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

Hello, good morning, everyone. Welcome to Wheaton's 2024 Investor Day. We are thrilled to have you here, whether it be in person or tuning in online. My name is Emma Murray, I'm the Vice President of Investor Relations here at Wheaton. Before we begin, I would like to acknowledge that we are gathered here in Toronto. We are on the Treaty Lands of the Mississaugas of the Credit and the Traditional Territory of the Anishinaabe, the Haudenosaunee and the Wyandot Peoples. We express -- or we recognize their long-standing stewardship of this land and express our gratitude for the opportunity to gather here today. I would also like to remind you that today's presentations will include forward-looking statements. They include our expectations and forecasts and are subject to various risks and uncertainties. So I'd encourage you to reference our latest filings to familiarize yourself with those. On the agenda today, you will hear from members of Wheaton's management team alongside some of our key partners, who will present updates on the assets on which we have streaming agreements. The depth and range of our partnerships, as you know, are essential to Wheaton's business, and we extend our gratitude to Ivanhoe, Hudbay and Vale for taking the time to be here today. In terms of management's presentations, they have been carefully crafted to provide both a broad overview and also a deep dive onto some of the nuanced aspects of our business. Our key objective today is for even those of you who've been following Wheaton for years to walk away with some fresh perspectives and a deeper understanding, particularly in the realm of both our approach to valuation and overall risk management. We do have 2 bespoke Q&A sessions. So for those online, feel free to type your questions into the Q&A box, and we will address those here in the room. For those newer to our story, we encourage you to check out our latest guide book that was published last week and is now available on our website. It provides both a comprehensive introduction to both streaming in general and Wheaton's unique approach, and I would highly encourage you to take a look. And with that, it is my pleasure to introduce to the stage our President and Chief Executive Officer, Randy Smallwood.

Thank you, Emma. And again, thank you, everyone, for joining us today. It's a pretty special, 20 years since we came up with this concept of streaming. And of course, what we've created is worth celebrating. And it's become a major force in the mining industry in terms of supplying capital to an ever hungry industry that does need a lot of capital. And so I'm really honored to be able to take the stage here and share some of this with you, along with the rest of the team. We do have a very big team here. We brought a lot of our specialists, a lot of our team out. So just, everyone put your hand up if you're part of the Wheaton team just so that you can get a sense of scale. There's a lot of people here to answer questions. And so this is really about -- this is really about getting out there and taking the time to actually meet with us and dive deep in terms of the detail of why I think we've had such great success and what we're celebrating here today. So I think this first slide really does kind of highlight one of the differences that we have in Wheaton. We really do put a lot of focus on all the stakeholders. This is -- shareholders, of course, a very important stakeholder in terms of -- that's where my paycheck comes from, right? It's the shareholders' capital that we're using and investing and such, but you can't stay focused just on the shareholders in this business. You need to have a broader focus. And I think that's one of the things that we at Wheaton recognized probably ahead of a lot of the others in the traditional royalty business in terms of how important relationships are and how this is about providing capital upfront to help partners be successful, but it's about doing everything we can afterwards to continue to deliver value. And that is really the second group of stakeholders, that is incredibly important to us, is the partners that we're working with and trying to find ways to continue to deliver value. We have an overlying mantra in our company, the stronger our partners are, the stronger we are. And so we have to do everything we can to help our partners be strong and successful because we ride that same wave that they ride in terms of moving these projects forward. And of course, none of this happens without the support of the communities, the neighbors, the people around us. And that doesn't -- that's not just around our offices, most importantly, it's around the actual assets that are delivering us our metal. We need to help our partners ensure that there is good sustainable benefits for all the neighbors around that. And we put a real strong focus on that in this company. And I think that's been one of the keys to our success in terms of what differentiates Wheaton as a potential streaming partner, a potential financing partner and building projects is that we put a lot of focus in trying to deliver that on a go-forward basis. So the Streaming model most of you, it's been around long enough. I do remember the first probably 8, 9 years of operations, we're trying to explain what the Streaming model was and [indiscernible] black box and the simplicity is actually confusing. It's an upfront payment for a portion of the metal that gets produced, which means that we do share some of that operating risk, but we deliver so much better. We don't have the cost risk. We focus on high-quality assets. We don't have cost risk, and we've got a good strong progressive dividend that we pay back to our shareholders. But on the upside is we do deliver that same potential upside. So as long as we continue to select good assets run by good partners, we're going to see exploration and expansion potential. We're going to see that commodity price leverage. The fact that we do have a production payment on a per ounce basis makes a stream more attractive than bullion or then a royalty where you just get a straight NSR. We do have some leverage on the commodity price. And of course, optionality. We've got a great portfolio of assets, most of which are delivering or on track to deliver to us, but there is some good optionality in the portfolio, too, in terms of good long-term investments. And so all of that really adds up to, especially in today's world, and we've seen this in the last month of different conferences that we've been to and such, a lot of appetite, a lot of interest from generalists that are coming back into the space. This is an excellent way for a generalist to dip their toe into the actual resource sector and get good exposure to high-quality precious metals -- precious metals byproducts at least -- precious metal production. So it's been a pretty successful couple of years. The company is doing very well. We had 2023 was a record year in terms of the number of transactions that we completed. They were relatively small in size, but when you add them all up, we put over $1 billion back to work. I consider in a year where we commit more than our cash flow, which was the case last year as being a successful year from a growth perspective. And that will ultimately deliver growth to the overall portfolio, and you'll see that in one of the later slides. Good strong balance sheet still. I just sit and look at the capacity that we have to continue growing the company. It's definitely still top of line in terms of capacity, continue to look for great opportunities. The key organic growth, and I think that's again for a company of our size and scale to have 40% to 50% -- actually, if you go with 6 years, it's about a 50% growth profile, to have that kind of a growth profile organically with no further acquisitions. And I'm pretty confident that our team is going to be able to chase down some additional acquisitions, as you'll probably hear from some of them later on today. We're very active on that front. But even without another transaction, we have 40% to 50% growth over the next 5 to 6 years and a good stable long-term production. It's not like it climbs and then falls off of a cliff. It climbs and stays up there for a good long time. So incredible assets in the portfolio. And a lot of the activity that we've had over the last 4 or 5 years is going to be delivering that growth over the next 4 or 5 years. So on the ESG front, and Patrick is going to get up and spend some time on the stage and talk about that. But again, leaders in this space. This is -- I think, one of the things that I'm probably most proud of in terms of what we've done as the Wheaton team is the fact that just about every streaming and royalty agreement now, whenever it's written, has a sustainability component into it where that company is doing that. And so to have changed the industry to the point to where it's a requirement -- even though you don't have to operate the property. I remember back when I was an operator, how the royalty companies would boast about. I have to worry about any of that stuff. Yes, we all have to worry about it. We're all part of one industry. It's an incredibly important part of it. And so it's something that we intend to stay on top of and in front of and continue leading the way there. And I do think it shows. In fact, this is -- this shows our performance over the last 5 years. But if you go over this entire history of this company, if you look at multiple period, 1 year, 3 year, 5 years, Wheaton has continually outperformed in its space. It's continually delivered in its space. And you can see that over the last 5 years, up 130%, which is slightly better than the S&P 500. Anyone can pick a window in time. But when we test it all the way through, we have always been one of the top performing companies out there. And so we continue to strive for that. We don't -- we're never going to rest on that nor are we going to continue to try and do better. It's just something that's built into our DNA. The portfolio is one that I'm proud of. It is America-centric, but that's really because we spent the first 10 years of our company chasing silver. And silver, of course, is really Mexico and Peru and a few other peripheral places, but that's where the bulk of the free world's silver comes from at least. China, of course, produces a bunch of silver, but it's not investable for us. But you can see we have expanded into Europe and proud to say we're finally into Africa. We closed the deal earlier this year, announced that last year, but closed it earlier this year, and you're going to hear a bit more about that from Marna. But a great portfolio of what I would say, pretty low-risk jurisdictions, but a very diversified portfolio. You look at the number of assets, altogether, over 40 assets and 18 of them producing and a large number of these things will be coming into production and delivering that 40% to 50% growth. So really good high-quality portfolio, and I guess I should probably highlight Australia for the few. We do have 1 asset in Australia also last year, Mt. Todd. So our first investment into the Australian space. These next 2 slides are really what I think differentiates Wheaton in not only just the streaming space, but the entire precious metals space. 18 assets delivering us production. 93% of that production comes from the first or second quartile, and you can see the bulk of it is first quartile. That's important. It's important because those assets aren't going to have financial problems. So we don't expect interruptions from them because they are the most profitable items. And keep in mind, when I'm talking about the production cost, this is the partner's production cost, not ours. Our cost is fixed and we're always going to be done in the first quartile with our cost range. It's their cost. How much does it cost for Vale to produce copper at the Salobo mine, right? How much does it cost Hudbay to produce copper at Constancia. That's the real key differentiator. And as I said, because those aren't the assets that aren't going to have -- they won't have any financial issues at the asset itself. They'll continue to deliver. But the most important aspect of it is that it's also the first asset that our partners will reinvest into. They're going to spend their exploration dollars because these are high-margin assets that deliver high margins to them also. And one of the aspects, I don't think it's captured in the slide base, that I find incredible is that if you sum up all the ounces that we have bought, reserves and resources over the 20-year life of this company, and you knock out the production over that 20 years, and you add back in the exploration success, we're down less than a year of production. We're down about 500,000 ounces. Annual production this year is going to be somewhere around 600,000 ounces. We're down less than a year. In 20 years of existence, we have lost less than 1 year's production. That's exploration success at these high-margin assets that has continued to replace the ounces that have produced. And it just gives you a sense of the longevity, which is, again, highlighted on the side by the fact that we have 28 years of reserves in front of us, another 12 of M&I and another 24 of inferred. Sum that up, that is one of the longest reserve and resource life in the precious metal space. Again, another advantage of the Wheaton model is that most of our investments are into base metal mines. Base metal mines being more capital-intensive means they need a bigger, stronger reserve and resource base before that decision is made to invest into those mines. We get the advantage of those long-life base metal operations into a precious metal space where there's nowhere near that level of investment in terms of reserves and resource definition. So it's another benefit that we deliver: good, strong, long-life reserves and resources. And then there's this slide. We talked about this already, the 40% to 50% growth over the next 5 to 6 years. What's beautiful about this is that it's not coming from 1 or 2 assets or 3 assets, the growth feeders are listed there. We've got a number of assets that are actually already producing, and this relates to expansions or grade scheduling or shifts in operations or exploration success coming into play. Salobo, Antamina, Penasquito, all rigidly scheduled. Boy, it's already flashing red. Am I already out of time. Okay. I'll speak this up. Yes. It's just such a good strong and what I love about it is that it's layer cake. It's going to be a number of different assets feeding into that growth over the next 5, 6 years, each taking its turn in terms of the sequence and stuff like that. Next year, we're going to see great production Blackwater, Goose and Platreef, all start delivering to us. Mineral Park by the end of next year, possibly the year following; Fenix the year following; Salobo, of course, Phase 3 ramping up; Antamina, grade scheduling, they're moving the in-pit crusher. It's all really happening. And so good, strong production growth all the way across the board. I don't know where the time went. It's -- I thought I had like 5 minutes here. And that has set us up to be such a strong company in terms of that production growth. And you can see that ever since we created the streaming business model back in 2004 and shifted into the precious metal space in 2013 because we were only focused on silver up until that point there, but 2013 was our first investment into the gold space, we have maintained a dominant share of this market. We still have over 40% of cumulative investments into the streaming space and still lots of other opportunities coming down the pipe. In fact -- and very active. If you look at the largest precious metal streaming deals over the last 5 years, we've completed 4 of the highest 7, I guess it is, over the last 5 years, and again, constantly looking for that. Every one of these deals' size is relevant, takes about the same amount of time. You're still going to go through rigorous due diligence with a $100 million deal or it's a $1 billion deal. So we definitely are putting as much as we can into that. But we're not seeing a lot of the bigger deals. We are seeing a bit of a shift towards slightly larger deals than what we've seen in the past, but Haytham will feed a bit more on that -- the millions here. Future mining challenge. We announced this over the Denver Gold Show. It's funny because my book says it's $1 will be awarded, not $1 million. And so I was concerned what was going to come up on the screen. Yes, this is interesting. And this is, again, a way for us to recognize that we are part of a broader industry, and I'm really excited about this. At our Tuesday evening event at the PDAC, we will be awarding a prize to someone that contributes a clean technology idea. We, as an industry, have to continue to take advantage of the fact that society has given us a bit of an opportunity or to prove that we can responsibly deliver critical minerals as a broader industry. I do consider gold a critical mineral. This is something that's very important, is trying to support these new technologies as they come into play and give people the steps to actually help this industry produce more with less, more efficiently, less of a footprint left behind. And so it's something that's very important to us. Very excited about it. It's a wide open. It doesn't have to be. It's not related to our partners. We're hoping that the benefits from this is something that we can deliver to our partners but also the broader industry itself. And so really excited about that. Patrick is going to spend some time talking about it later on. Since this is flashing red, I better get through this. So up next, we've got an interesting panel. We're going to have the senior SVPs of the company come up and talk about why I think we are unique in terms of our approach to due diligence, our approach to valuation, our approach to protecting our shareholders' capital, which is what we're paid for and trying to find ways to make sure that, that capital grows. And so since I'm flashing red, I will speed this up and welcome the 4 SVPs up here. Haytham, Gary, Curt and Patrick, the stage is yours.

I'd also like to welcome you here today and thank you for taking the time on your busy schedules to be here. It's -- I know with conferences, et cetera, it's a pretty busy time of the year. So what we're hoping to do today is give you guys a bit of a look behind the curve and just what the multipronged approach we use to evaluate opportunities. So it looks quite sequential here. You've got 6 different steps, but it's actually quite iterative. Every single process is unique. Every time we sit down with the company, it's quite unique. Neil Burns kind of tested, Neil's my right hand guy. Every time we sit with the company, we ask them, tell me what you want? What you really, really want? And worst-case scenario, if they don't want a stream, they're stuck with that song in their head for the next 24 hours. So that worked so well. But what we actually do, as you can see from the first call, we start with technical due diligence, that is the key. I'll be talking more about that in future slides. Geology -- it all starts with geology. We've got our own and this is quite important. Everything we do from a technical perspective is done in-house. We don't really typically go outside and hire consultants unless it's an area of expertise we don't have. But based on our technical team that we've built up over the last dozen years, we can pretty much handle almost every single aspect of technical review. So it all starts with geology. And we do a very, very detailed review, and I'll go through that in a couple of slides of what we actually do on the geology side. But if it doesn't pass from our geological review or the interpretation that we come up with is not the same as what the company comes up with, we do not move forward with the transaction, and that's where it stops right there. Then we move over to them...

Yes, maybe I can just add, like having our own technical due diligence team really allows us not only to just focus on the risks associated with an opportunity that we're looking at, but allows us to look at the potential upside opportunities that if we were hiring third-party outside consultants, they wouldn't be focused on. So I think it's an important aspect that differentiates us.

Yes. Thank you, Gary. So once we pass the geology, it's passed -- the first pass through, we look at mining and processing. And we look at the strength of the asset. We look at the counterparty strength that Gary and his team does and he'll be going to a lot more detail on that going forward. And all this is designed so we can come up with a discount rate that we can apply to the overall analysis that we do. Now this is the corporate development analysis. And once we come up with that discount rate, we also come up with a production profile. And this is incredibly important. We don't just take the company's technical report and use what they have in their technical repot, come up with valuation, and that's what we do. That's -- we come up with our own independent production profile that -- and we'll go through more detail on how we do that in a couple of slides, but that's key as we evaluate based on what we think is going to be there. And then at the same time that all this is going on, Patrick and his team are doing the ESG assessment. And I can tell you, every single site visit we've been on, every project I have worked on since I've been here, it's almost 13 years, has had somebody who's focused on ESG. And Patrick, as I said, will go into more detail on that. From a security and structure perspective, this has obviously been very topical over the last 12 to 18 months given some of the things we're seeing in the industry, and Curt Bernardi will go through some of that in his slides. And so all these things together, when we get to that fourth column, we have to make a decision, do we move forward? Do we put it in an indication of value or not? Probably 80% plus at the time, we don't even put an indication of value, and that's where it stops and we move on to the next opportunity. Now when we do put an indication value and we, as a corporate development team, me and my team and Neil and the rest of the team, we'll go through and come up with a profile that actually makes sense. And you use our own discounting, our own commodity price assumptions, our own timing expectations and we'll put together an indication of value. And then Gary and his team and Gary will be talking in a lot more detail about this, will do their own analysis as well. And then what's very important is here is we sit down in a room after that. It's not just corporate development and finance. It's got accounting, legal, tax, Investor Relations, ESG. Everybody sits in the same room. We've got almost 2/3 of the company. Every time we go through an opportunity, 2/3 of the company gets into a conference room or by video conferencing and we hash it out. We try to figure out, okay, does this make sense for Wheaton? Now that being said, you can see from this slide that ideally, it takes about 2 to 3 months to get a transaction done. Last year was, as Randy mentioned, was a phenomenal year. We did 8 transactions. That was the culmination of 2, 3 years of work that all happened to come up in that last year. Typically, if we do 1 or 2 high-quality transactions a year, we're actually quite ecstatic. And as I said, it takes 2 or 3 months. You're probably doing the math going, does Haytham only work 3 to 6 months a year? No. I actually work a full year. We actually look at over 60 different opportunities in any given year. And 90% to 95% of those don't make the cut, and we just move on to the next one. So we do look at quite a few opportunities. We start with a desktop review study, but there's a couple of different approaches. If we're proactive and we go out to conferences, we're going out to talking to companies, I'd say probably 75% of the stuff that we're looking at right now, the opportunities we're looking at, is driven by us. We're out there meeting with companies and we're continuing to meet with companies every year for the last 13 plus -- well, 20 years, I guess -- as a corporation, 20 years. But we're building relationships every time we sit down with those companies and meet with those companies. So when we're proactive we have to start with what's available. Public information is out there. We start with the technical reports that's out there. We put together our own models based on those technical reports, and we'll [indiscernible] an indication about it. That's what IOV stands for there. And if a company shows interest, then it will move to the data room stage, et cetera. Now the other 25% is usually mandated. We typically have bankers coming in. We have corporations themselves approaching us and saying, "Okay, would you consider a stream on this opportunity?" And keep in mind, we're precious metals focused. That's where our growth is coming from over the next decade. And if we do decide to consider that opportunity, we'll sign a CA, we'll get access to the data, and we'll do a deep -- that's where Neil and the rest of the technical team at that point in time will come in and start doing their a deep dive, and we'll go into more detail on the next slide on that. Once we do that, assuming that we're comfortable, there is interest in looking at expanding this transaction further, we'll schedule a site visit. Now at the same time that we're scheduling a site visit, we will also -- Curt and the legal team will start working on a term sheet, which highlights the terms and conditions that go into the larger definitive agreements. And that's basically signs that we are not leaving any big surprises when the actual definitive agreements come around. So we'll do the site visit. Assuming everything goes well in the site visit and we'll talk more again about that on the next slide, we'll submit a final IOV. Now if we're going to start -- once we agree to the terms on the term sheet, assuming the company wants to move forward, we'll sign exclusivity, and then we'll begin negotiating a term sheet -- definitive agreements, pardon me. And usually within about -- that whole process takes as we said, 2 to 3 months, but we've done it in as little 6 weeks and sometimes it takes years of progress and work and collaboration, et cetera. But we really do try to understand. We try to be fluid. It's an evolving process. And every single transaction that we do has something unique in it. I'd love to be able to say, we just want to do the same transaction over and over because that will make our lot easier, but the market is evolving. We started with fixed production payments. Now we're doing percentage of spot production payments. We started with looking at structures with no drop-downs. Now we're doing drop-downs, and that's basically to alleviate the concern of having this big tail-end weighted stream for the life of the asset. Now this next slide. This is an incredibly important slide because this is where we decide whether to move forward or not. If from a technical due diligence perspective, what we look for is assets that fall in the lowest half of the cost curve. We want asset. Right now, 93% of our assets fall in that lowest half of the cost curve. Now that doesn't mean we won't do a stream if an asset falls in the upper half of the cost curve, but we'll risk adjust that accordingly and that's incredibly important to remember. So if you see us do an asset that's third cost quartile, you'll see a return that's probably double-digit return for us on that and that's something we'll consider. And obviously, we take into account political risk and everything else. Now if every asset has to be -- has to have a meaningful production profile. When we say meaningful production profile, we want at least 0.5 million silver equivalent ounces or call it, 0.5 million ounces of silver, 8,000 to 10,000 ounces of gold a year contribution, double-digit mine life with growth potential. That's what we consider meaningful. Optimally, we'd love to have a $5 million or $10 million silver equivalent ounce contributor. But you've got -- those opportunities don't come. They are far and few between. And that's why you've seen us looking at all sizes. Sometimes when they're mandated, they get bigger opportunities and sometimes there are smaller opportunities. What -- and this varies. Sometimes you'll see people doing royalties as we see people doing streams. When we do royalties, it's typically so we can lock in a stream. What we do is we put in a royalty, we get a ROFR on future transactions -- future streaming transactions. That allows us the first look or the last look, I guess, more importantly, when there is a process there that goes on. That doesn't mean we won't look at monster royalties, big royalties that are out there that contribute meaningfully to our bottom line. That's definitely something we would do. But our core business is streaming, and that's really what we're tailored towards. Now when we do a tailored -- data room review, and I said I'd talk a little bit more about this, we don't just take the company's reserves and resources and do that. We take the entire drill hole database. We put together our own block model, recalculate reserves resources, vet those against the existing companies, reserves and resources. Then we take the -- look at the economics of these things to come up with the -- make sure the reserves are where they're at. We'll run Whittle Pits, we'll run the Leapfrog, et cetera, and we'll come up with something that looks more realistic. And then when I say we come up with our own production profile earlier, it truly is an independent production profile. That's what we actually bid on. Now it doesn't mean we don't understand what the market is doing because we run the same analysis using the actual company's profile so that we understand what the analysts are seeing versus what we're doing. And that's why sometimes you look at this and you see a transaction you say, "Wheaton not less so expensive." A month later, you find out that, "Okay, I see why there's a significant expansion of reserves and resources." And once we do all this desktop review, then we go back and we'll do a site visit, assuming it passes that. Now when we're doing a site visit, it's not just -- a lot of the time, we say it's confirmatory in nature. We want to make sure there's no -- we look at the tailings, we'll look at environmental, look at ESG, which Patrick will talk more about. But what's really important for us is, I asked my team to look at what the vision is, where is the upside? Where is the improvements in grades? Where is the resource expansion potential? Where is the throughput expansion? Where is the recovery improvements coming. And not only do we look and see what the company has decided, but we look and see with our technical team, how we can actually suggest things to help improve the overall profile of the asset itself. And there's been a number of times that we've done that where we've actually gone in and we've actually helped them improve it. And as Randy said, our mantra, if our company -- the stronger the company is -- the stronger our partner is the stronger we are. So we do everything we can to try and help them using our technical expertise. So once we're at the site visit, we go through all the different avenues, whether it's mining, processing, G&A. We look at the various aspects of the environmental plans. We try to make sure that the company is moving in the right direction. It doesn't mean -- from an ESG perspective, it doesn't mean we can't be we -- a lot of companies are getting up to speed. It doesn't mean they have to be there, but it just means they have to be making an effort, and Patrick will talk about that. So with that, I'm going to pass it over to Patrick, who's going to talk about the community, social and environmental aspects.

Thank you, Haytham. Obviously, when we looked at a new opportunity, ESG is a critical component. More often than not, it's the main reason we walk away from an opportunity. Now we want to establish a scorecard, a framework to evaluate a company's mining projects, ESG and it's based on international standards. It's based on things like IFC, ICMM, the Royal Gold Council or RGMPs. If you look at the scorecard, we've got 11 different topics that we review. Each of these topics are reviewed or scaled on a rating of 1 to 5 with 1 being poor, 5 being excellent, and 3 being satisfactory. If things are scoring below 3, we want to understand why and we want to see a pathway to get them to a satisfactory level. If we look at the individual topics under environment, we look at things like climate change, air quality, tailings, waste water management and then biodiversity. When we look at the social aspect, we're looking at human rights, health and safety, labor relations, and we also look at the community relations. What are they doing to put investment back into the local communities around the mine site. And that's something that we can help with. If we do end up partnering with them, we can add capacity through our own partner community investment program. And then we look at governance, in governance is where we take a deep dive on the counterparty. We want to understand who's behind the project, what's their track record. And we want to see what systems they're going to put into place to track their own ESG performance as they develop or operate the mine. Then how do we go about actually reviewing this? Well, it's a similar process that Haytham said, in that we do a document review, a desktop review initially, where we'll look at regulatory filings, we look at EISs, we'll do a web search and see if there's any opposition to the project or there's been any past breaches with the project or mine that we should know about. If that passes, then we will accompany the technical team on a site visit and we'll do the ESG due diligence on site, but then we go into the community itself, and we'll talk to community leaders. And we'll get a better understanding of what the sentiment is around the minor project. Now along that whole process, there may be that we need to bring in external experts to help understand and evaluate the project. Where we typically see those experts come in is doing the country and regulatory risk. We've got an in-house expert who will look at the macro picture of a country, do a very good job analyzing the trends, the overall risk, but sometimes we need to get really detailed and really get from a regional level, even to a local community level. That's where we're bringing in somebody with local expertise really benefits us. So we'll bring in consultants. We've got a number of consultants we currently work with who have expertise, local expertise, all through LatAm, through Africa, through Europe, and they do a very good job, and we have a good ongoing working relationship with them. So what risk do we look at when we're thinking about country and regulatory risk? The obvious ones are things like political and macro stability; the regulatory risk, is this a country that's going to suddenly ban open pit mining or not; foreign relations; infrastructure and supply chain; security and conflict risk; and of course, are there any legal issues or risk? And if we're looking at these risks, the best way we get around them is to structure -- put a structure in place and to talk about the structure will be Curt Bernardi.

Thank you, Pat. So I'm going to really highlight the focus and the attention that we bring to structural deal elements here on this slide. As the architects of the streaming model, we've been in this space for over 20 years. And over that time, we've seen deals start to go off the rails at times. Sometimes they actually do go off the rails, both for ourselves and for our competitors, but we learned from that. We take that into account in our next deal. We look for ways to try to minimize that risk, mitigate that risk or ideally eliminate that risk from having an impact on us on our next deal. These are long-term deals. So they are designed to last the 20, 30, 40-plus years. And there's a lot of risks and a lot of eventualities that might happen over that time line that we have to try to take into account and we spend a lot of time on this. 9 times out of 10 or maybe more like 98 times out of 100, nothing happens and it's all good. But that 99th time or that 100th time, something does happen, and we all go to the agreement to see how does it protect our interest. So it's critical that we get these elements right. Now that said, as was alluded to before, we do pride ourselves in being creative in helping our partners achieve their objectives, while at the same time, protecting our interest. And we do come back to some key approaches, some key principles when we're considering what we can and what we can't do in any particular amendment that's being requested. So with that, we're going to turn to some of these here now. Commodity price risk. Our mandate to our shareholders is to provide long-term exposure to precious metals, low-risk, high-quality precious metals. Inherent in that is that we do take price risk. At $2,600 goal, that seems like a pretty good call, but the reality is we take that risk both up and down. On production risk, that is really 2 elements: one that the total number of ounces that in the ground that Haytham and team have come up with are actually there and can be economically extracted; and second, the timing with which those ounces come out of the ground. Similar to commodity price, this is both a risk and an opportunity. It's possible that those ounces come out faster or slower out of the ground or there may be more or less ounces than we think. We do take that risk, but with some important qualifications. It's not a structural deal element, but Haytham did refer to our own independent production profile that we come up with. That's probably our primary avenue to mitigate this risk. But what we do look for is exploration potential to potentially set off the potential delays in extracting the ore from the ground. And the larger the area of interest, the more exploration potential there is. So we look to have as large an area of interest as possible. If or from outside that area of interest gets processed at the mill that we helped finance at the mineral processing facility, we do have a co-mingling clause that looks to compensate us for an adverse impact such as delay in timing of getting our ounces or reduced recoveries that might happen. A few words on buybacks. We're very averse to buybacks. What we don't want to do is finance a mine during its most risky stage of development during construction, only to then have the stream get bought back after a project is successfully built. Again, our mandate to our shareholders is to provide long-term exposure to precious metals, and that really isn't accomplished if a stream gets bought back in years 3 or 4. All right. Well, the rest of these risks...

On that basis, we do provide for a lot of the junior companies, buybacks in the event of a change of control because we don't want to be a deterrent. We recognize that a lot of these junior companies are trying to build it so they can sell it and they don't have the expertise to build it themselves. So we do provide only a 1/3 buyback and you have change of control for a limited time, and that's roughly to when they -- probably when they hit about commercial production. Sorry...

No, no, that's a good point. Thanks, Haytham. So the rest of these risks here are really are just more risks than there are risks and opportunities, and we do strive to minimize our exposure to these elements here. The first counterparty credit risk, we spend a lot of time on this -- a lot of time. At a minimum, we look for a parent company guarantee. That's a feature that we have on all of our streams with the exception of one, which is a bit of a historical anomaly. But otherwise, we have a parent company guarantee on all of our deals. We also look to have a guarantee from the mine over which we have the stream that is producing. And depending on the strength of those guarantees, that might be the end of the matter. But often, if they're not investment grade; for instance, guarantees, we do look to have security put in place. Primary focus of security is on the assets that we have the stream on, again, share pledge of that company. And we may go beyond that and look for additional security. Once we have a security panel agreed to, we then have to consider where do we fall in the ranking on the waterfall of distributions relative to debt and other liabilities the company might have. The higher -- the more senior we are in that waterfall, the lower the cost of capital and Gary will talk more about valuation in his section. We also look to have distribution and debt limits. That's really to avoid the company over levering itself or stripping the asset of cash. At the time we do a deal, we have a high level of confidence in the management team that's there, that they're going to do and be a prudent operator. But again, these are long-dated instruments we have to be able to protect against potential future management changes. ESG, as Patrick mentioned, this has certainly been an evolving area over time. I've been here 16 years. And when we first started doing streams, we did a little more than in terms of the contractual protection. So we did a little more than required that our partners comply with all applicable laws. We do now have higher standards, as Patrick referred to, the IFC -- 2012 IFC performance standards, global standards on tailings management and our own supplier code of conduct will require that our partners adhere to those. If there's an annual audit that we put in place, if there's a deficiency, there's a corrective action plan put in place with a reasonable time frame to correct that deficiency. In some cases, if an issue is identified through the due diligence process, we'll actually put in place into the contract a provision to try to be an agent for change in that area. So we have, for instance, require that a portion of the deposit get used to remediate a particular concern. We have, in other cases, required that ESG initiatives be pursued, either at the mine site or in the neighboring community. On the permitting side, we're not involved in, and we don't control the permitting process. So we really strive to mitigate our exposure to this risk. The most effective way to do that to not advance any capital until permits have been obtained. In some cases, however, the mine does need some initial capital in order to be able to get through the permitting or get through to a construction decision. And we will, in that case, provide a portion of the deposit on an early deposit basis at a higher rate of return, number one, and we'll have delayed payments that kick in if those permits aren't obtained by an agreed date. But for the most part, we do try to provide our capital once permits are obtained, once there's a complete financing package in place so that we know the mine has enough money to be fully built and once construction has started and then we'll advance funds typically in 2 or 3 staged payments confirming at each stage that those conditions remain satisfied. At the end of a construction period, we'll have a completion test to make sure the asset was built to the original design specs, and there will be a period of time where we might get delayed payments if it's not yet satisfied and then ultimately, at some outside completion date, we'll look to get back a portion of our deposit depending on what percentage of completion was achieved. If completion is achieved, we then fall back under production risk. We share that risk now side-by-side with the mining partner in terms of the production profile that happens from that point forward. On operating and capital costs, that's similar to permitting. We're not involved in, and we don't control the operations. So we don't look to take this risk. As was mentioned earlier, we have a fixed production payment. Presently, it's a percentage of spot price in around 20%. And that really is our contribution towards the operating cost, the capital cost, the sustaining cost that the mine might have. In some cases, if there's an expansion project that has been sufficiently defined at the point that we enter into a stream, we'll agree to some expansion type payment and Salobo is a good example where we did that. So that's a very brief summary of, in one page, what is really a 100-page streaming agreement. So it's high level by necessity. And everything you've heard so far from the production profile, technical due diligence, the environmental due diligence, the country risk due diligence and structural safeguards, all feed into a valuation. And with that, I'll turn it over to Gary.

Thanks, Curt. So I think one of the things that really sets Wheaton apart is that we have this -- what we refer to as dual-track valuation. So the corp dev group takes all the information that they've aggregated through their very deep dive due diligence and comes up with a production profile and a delivery profile of the gold or silver that we're expecting to receive from this investment. And then they go off and they do their own valuation, and my team does an independent valuation of that profile. And I'm going to focus on what the finance team does. So we really look at it in 2 different ways. First, we look at the value on an NPV basis and that's our primary focus. And there, we're starting with our weighted average cost of capital. We're looking at the risks inherent in the opportunity that we're evaluating, and we're coming up with what we think is the right discount rate given those risks, again, relevant -- relative to the risks inherent in our existing portfolio. Then we look at things on a net asset value basis. And we're doing this primarily because when we do a deal, we want to know how you guys, the sell-side analysts are going to analyze that deal. And if there's a difference between how we valued it and how you guys are going to perceive it, we need to know about that and try to address that head on when we announce the transaction. And at the end of the day, I think as Haytham had said, we say no a lot more than we say yes to these opportunities that we evaluate. And when we decide as a team that we're going to enter into these agreements, we really ensure that the deal is going to be accretive to our existing shareholders on a risk-adjusted basis. So looking at the NPV approach, when we're looking at coming up with the right discount rate, we really evaluate the risks inherent in the opportunity on 5 different bases. And again, remember, we're doing this relative to the risks inherent in our existing portfolio. So the first and foremost is we assess geologic risk. And really, we're relying upon the technical team's due diligence here. And so we have a lot more confidence in ounces that are coming from proven and probable reserves versus M&I and inferred resources. So we will use a higher discount rate for those ounces that are coming from those other mineral categories, but it's worth noting that over 40% of our current resource base fall into the proven and probable category. Then we look at counterparty credit risk and the security structure that we were getting relative to other creditors. And if you look at our current portfolio, about 70% of our production comes from investment-grade counterparties. And on average, we would assess the counterparty credit risk at being about BB high. So when you look at the deals that we've done over the last couple of years, where they're being done relative to a single-asset development stage companies, the credit risk is higher in those cases than our existing portfolio, and we need to build that into the discount rates that we're using to evaluate these opportunities. And then we're generally looking to structure ourselves as being pari-passu with senior creditors. There are situations where the margins are so robust for an opportunity that we will be willing to be subordinate to senior creditors, the banks. But generally, if we're dealing with a noninvestment grade counterparty, we'll always be looking to get security. And then we look at political risk. And here, you look at our existing portfolio, and I would argue that we have a relatively low political risk profile. And when we're looking at a new opportunity, we'll look at the way that U.S. dollar-denominated bonds for that country are trading relative to U.S. bonds, and we'll look at that spread as a gauge for what we need to build in to compensate us for taking that political risk. And then we look at the quality of the mine that we're investing into. And if you -- we're really only interested in doing deals relative to mines that fall into the lowest half of their respective cost curves, but we will pay more for a first quartile asset than we would a second quartile asset. And then we look at whether we're dealing with a mine that's been in operation for a number of years or we're dealing with a development stage property. And as Curt has outlined, we do contractually protect ourselves in a lot of ways from the development stage risk that we might be exposed to, but it's still higher risk than when you're investing into an operating mine. So we distill all of that down into a discount rate, and we come up with a value for that opportunity. And that in our eyes is the most we could ever pay for that asset before we would view ourselves as diluting existing shareholders. And so we'll bring that value to the table when we get together as a group and compare that to what the corp dev value has come up with. And they'll distill their discount rates down in a similar fashion. But they're really looking at how they've historically valued transactions whereas the finance team is looking more at our Bloomberg terminals and how the market is currently pricing these risk elements, and we come to an agreement on what value makes sense as a group. And I mentioned that we wouldn't do a deal that we didn't feel strongly was going to add value to existing shareholders. And so this is just an illustration of how we would evaluate the accretiveness of transactions. We look at all of these different elements. And we're looking -- you'll notice that we start with what percentage of our current enterprise value and upfront payment represents. So we're not doing this just on like a per share basis, and we're using cash to make these -- cash on hand to make these investments these days. So if we were to do it just on a per share basis, I think everything would look accretive, right? We're not issuing equity to -- and we don't anticipate that we will -- sorry, Laurie, we don't anticipate that we'll ever have to issue equity to pay for any of the opportunities. So we do it on an enterprise value basis, and things have got to look accretive on most of the metrics. You'll see that in this illustration, there are a couple of metrics where it doesn't look accretive, but that's probably in the short term. Probably underlying this illustration is a development-stage asset that's not actually going to be contributing for a number of years. The most important metric in my eyes is how it ranks on an NPO basis, and this is something that I think we invented. NPO stands for net present ounces. So what we do is we take the discount rate that reflects all of the risks associated with that opportunity, and we discount all of the ounces back to today, net present ounces. And we compare that to the net present ounces of our existing portfolio discounted at our weighted average cost of capital. And so the -- it's got -- the deal has got to be accretive on an NPO basis, which reflects a risk-adjusted assessment of the accretion. So hopefully, what we've conveyed to you is that when we're looking at these opportunities, we're doing a very detailed deep dive on all the different elements that are important to making a call on value. We -- in assessing that, we do take into account the structural integrity of the deal, the security that we're getting, the ranking that we are on the -- relative to other creditors. We do separate valuations, corp dev and finance and we're very, very disciplined. We say no, way more than we say yes. And when we say yes, we're all very confident that these deals are going to add value to our current shareholders. And then as Curt mentioned, we do continuously reevaluate and assess our performance. And every year, we do what we call a postmortem analysis. So we look at every deal that we've ever done, and we compare it to the original investment thesis that we had, and we evaluate what went right, what went wrong. And I will say that when we've done that most recently, we put just over $10 billion into streams. We've recovered more than that already. And you look at the way that the market is valuing that streaming portfolio today. You run an IRR on that over the 20 years that we've been in business, and we have generated over a 17% IRR on every dollar that we've put into the streaming space. That's 17% compound return over a 20-year investment horizon. I would challenge you to find a portfolio manager that could put that kind of stat in front of you, but we do always look back and look at ways that we might be able to improve.

And just on that basis, we are, as Gary said, continuing to improve, continuing to evolve. Traditionally, what we've done is put streams up, and that's part of an overall package that the company has arranged whether it's debt, et cetera. Now depending on the quality of the asset, we will also not only consider a simple stream, we'll consider a stream, we'll consider equity, we'll consider some debt, whether it's working capital facility, cost overrun facility. Sometimes we'll put in a stream that looks like debt. In other words, has a much shorter tenure. And that helps alleviate the need for them to go out there and source that expense. And in the meantime, we're getting an additional stream throughout that period. So we're constantly evolving. Every opportunity is unique. We don't do this for every opportunity. We do this for the highest quality opportunities, the ones where we feel that it has the lowest risk. We're willing to put up more of our capital. We're willing to do a little bit more to try and get the transaction. So sorry...

Yes. No. And just following on that, the ability of us to be able to offer a fully financed package also is very attractive to the mining company because then they have a one-stop shop effectively. Some of those intercreditor arrangements get simplified if we're providing the full scope of capital. Although our focus, as Haytham said, really is on the streaming side of things, that's the primary piece of the capital structure that we're looking to get out of this -- out of any fully financed package.

But this is a competitive industry. And if we don't evolve, we'll get left behind. So we're always trying to think of ways to be the front runner and all of this, for sure. So...

And I think with that, we would open the floor to questions from you on our valuation. Ralph?

Just on your last point, has there ever been a transaction that you've looked at in the recent past that was actually marginal on the streaming basis, but it's actually the financing package that brought you over the line, whether that's the equity risk or the debt side actually made it accretive, right? Because those are 2 different because you didn't mention when the debt and equity analysis takes precedent or happens inside the technical due diligence phase. Is that separate? Or does it come at the end?

I'll start I would say that anytime we're bringing a comprehensive package to the table, the vast majority of the value has got to be attached to the stream. So these other elements are tertiary to the overall package. So no, it would be the starting point of my answer to your question. We would never do a deal where we're getting no return on the stream or a marginal return on the stream, and we're baking it into the return that we're getting on the debt or equity component. We would evaluate those other 2 components on their own merits, but the stream would be valued this way.

Yes. I completely agree. There hasn't been a single opportunity where we've said, yes, we're going to make some money on the debt and the equity. So we'll do the stream anyway even though it doesn't look good. Keep in mind, streaming works best when you're looking at an asset that the internal rate of return is not always the best internal rate of return because you've got that huge upfront capital expenditure that the company has to make when you put in that capital as a streaming company, it always improves the internal rate of return of a project. So once that capital is out of the way, the economics usually look great, and it's -- margins are 70%, 60%, 70%, 80% at that point so.

Yes. I have a question. I'm very intrigued about your structural safeguards. And assuming you do a streaming contract that meets all of these structural safeguards, I'm interested more in what other intangible factors do you think are important in your contracts? And for example, and I'm not going to say these are for you, but what's a no go for you for some other companies that may be -- if the operator doesn't provide the monthly reports or access to the site every year. So I'm just interested in what are the -- your top 3 factors that are no goes for you if the operator doesn't provide these for you?

Yes. I think really, we come back to our key mandate to our shareholders, I think. So if we've had situations where partners have wanted to have price sharing, for instance, on gold price. And that's has historically been a no-fly zone for us. It's like, you know what, that's so fundamental to what -- why our shareholders invest in us is to get that exposure to precious metals. So putting a cap on the price, we're just not prepared to do that, as well, another example would be buybacks. We've had deals come to us that have said we want a full buyback and as I said, that's just not our mandate. Our mandate is to provide long-term exposure to precious metals. Even if it's a good rate of return on that buyback, it's not really our core wheel. So we really do come back to those key principles and say, how aligned is it with these principles. And here's our bid, and you might have asked for price sharing. You might have asked for a buyback our bid will go in without those elements or a modified version like, as Haytham said, on the buyback, a much more narrow buyback. Term limits. Yes, we've historically been asked to provide limits in terms of duration of the stream. We have done some of those, but we no longer do. We strive very hard not to.

I think the parental guarantee...

That's another one.

Another one that would be a really important element.

[indiscernible] I'm just wondering more your operators not getting in the monthly reports and low new access to sites we don't want to do that for -- is that something you say no?

We haven't actually had be an issue. We haven't had anybody say...

Has ever been a pushback on that element.

On the monthly report, we are quite flexible. So we do say, listen, we don't need to have our own particular monthly report. You generate your own report internally for management purposes, we can pull the information out of that report. So it's not a big burden on the project. The partner understands that we need to be able to confirm the production, to know that we are getting delivered what we're supposed to be getting delivered. So we haven't had that particular one be an issue, same with mine site access. We haven't had anybody really object to that and say, not out to access the mine site. I think, as I say, people understand that we need to be able to verify when you were putting the size of the investment we're putting into these assets, we need to be able to verify that we're getting the return we're supposed to be getting.

Maybe just one final thing. What that -- you did mention international arbitration [indiscernible].

They don't all have that. We do sometimes have governing law being DC, Ontario. We have had, I think, one in London, the reality is, as I said, these are partnerships, joint venture agreements. We have to work together with our partner for a very long time. So we haven't had any disputes that actually end up having to go to arbitration or go to litigation because we work very hard to work with our partners to get a satisfactory outcome that is a win-win on both sides. It's also a small space, the streaming industry, and we really need to ensure that our partners are appreciative of what we can do and how flexible we are rather than being an being difficult to deal with.

Yes. To add [indiscernible] of more overlying statement there.

We're entering into a partnership. And if we don't get a sense that there's a serious focus on being a good strong partner from the other side, we're not interested in dancing. Like -- so if we're getting a sense during the negotiations that there's going to be challenges with getting access to full and open operating data and site visits, if that's going to be a challenge, then what are we entering into. So it's a partnership, and it's got to be a good, strong partnership. There has to be a full and open recognition that we're doing this together. And so I would say that, that blankets over top of the whole thing. I've had this comment several times, we don't stream political risk. We stream gold, we stream silver. We don't stream political risks. So don't try and shift your political risk on to us because we're not part of that equation. And that's all the protections that you see all the way across what we've got here. So much of that is related to making sure that we stay focused on the real core investment, which is the metal in the ground as it's getting produced out. And if there's not a full embracing of the concept of a partnership at the early stages, then we'll back off and let some of our competitors take those on because that's not our way of working together, so.

Yes. And the international arbitration was allocators [indiscernible].

Yes. so something like that is where a parent guarantee comes into play. And we've had companies that have refused to offer the parent guarantee and we backed away from the deal and some of our peers have know specifically the one I'm talking about have taken that risk. And for many years, I kind of questioned how important was that parent guarantee? I do question it now. These guys had it structured and we stood our ground in terms of what is important for us to make sure that we're not taking on that unnecessary something that -- I mean we have geologists that can tell us resource risk. We have engineers and metallurgists can tell us processing of social scientists that can tell us community risk. But when it comes to political risk, that's really a relationship issue. And that's not something that's very easy to forecast. And so that's a risk we try to stay away from as much as we can and the parent guarantee is very effective.

Sorry, Tanya, were you asking about the host country? You said like would we apply host country laws as our governing lot? No, we wouldn't do that.

Yes. application in that.[indiscernible]

Yes, for sure, we would not allow -- we've never had a situation where we've used the local law as our governing law, if that's the basis of your question, yes. So we would either use international arbitration or governing law in BC or some other jurisdiction that is common law jurisdiction. As I said, we strive very hard not to let it get to that point where we actually have to do that. That said, as I said before, right, that 99th time or that 100x where there is an issue, we all do go to the contract. And that forms the basis of our negotiation. Like how hard can we negotiate, what can we negotiate based off what the contract terms are. That's the reality of the situation. But we don't want to let it get to a point where it actually has to go to court or actually go to arbitration. We'd rather negotiate it before it gets stage.

I have a much simpler question I asked Randy this question the gold form as well. But could you maybe comment on the current opportunity set in terms of potential acquisition pipeline in terms of where you're at? And then as you mentioned, you were very active in the last year, 8 transactions. Do we expect that type of activity flow as we look forward?

I think we'll all turn to Haytham to.

Sure. I'd love to do 8 transactions here, but -- it just doesn't happen that way. There's too many opportunities where you look at and things just don't make sense. And you're not going to do an opportunity just because you want to get the numbers up. Typically, I would say we look to do 1 to 3 transactions a year to deploy in excess of $1 billion a year in capital towards these assets or commit in excess of $1 billion towards these assets. I'd tell you the opportunity right now I've typically said we're looking at it anywhere between 12 and 20 opportunities. I think we're probably right now. We did a lot of opportunities in lost a little while. We're probably working on maybe 8 to 10 right now opportunities. And hopefully, there's a handful that are fairly advanced, maybe half of those advanced if we can get 2 or 3 done this year, that would be optimal. But there's obviously no guarantees. You tend to -- as you saw when we highlighted the process, you tend to work through every stage and at every stage, there's an off-ramp. Your ability -- if you don't like what you see at that point in time, you get off and you move on to the next stage. Now a lot of the time, it's not necessarily not ramping you never jump back on. It's -- you provide recommendations to the companies for them to do certain work that will help you get across the line. And typically, if it's wheat on providing those recommendations, the lenders, when they come in with their technical team, they're going to do the exact same thing. So we kind of -- we provide our knowledge and expertise and feedback to them so that they -- we can eventually stream them. And that's why -- sometimes you get 8 transactions in a year because people come back and they've done the work and suddenly you're more advanced on a bunch. But other times, you're doing none. We're not paid by the number of transactions we do. We really just want to add the highest quality assets to our portfolio, look at our portfolio, what is it, 43 -- sorry, 27% in '18, 37%, 45% different assets. We're not looking to be have the largest number of assets. We're not looking to add 30, 40, 50 different royalties. We just want the best quality, highest quality portfolio in the industry, which I think is what we've actually established.

But Haytham let me put it this way. How would you compare the pipeline today to say, last year?

Well, last year, as I said, was an anomaly because it was a combination of COVID, everything else. We've worked on for 3 or 4 years, worked on various projects that needed to advance I'd say this year, you could probably expect a couple of transactions, not 8 transactions.

And then maybe just you brought up quality in terms of opportunities. And Gary, you said you say no more often than you say yes. Of the 4 year, who's been saying now the most often, I guess, in terms of where is the risk?

Well, I see not a lot. I can tell you that. A lot of the time, these guys don't even see -- like when I say we look at 60 the opportunities, call it, 40 of those don't even make it to them because they just don't pass the technical review. So once they do, they would pass it over to Patrick and security and with Curt and Gary on the finance.

And just to add to that. Haytham did mention that we do have this group meeting where we discuss every opportunity that slide, for instance, that Gary showed about accretiveness. -- that will show up there. There's a whole technical section, there's legal section, EHS section. And so I wouldn't say that any one of us necessarily kills the deal, but we might think this would be my view, but I think we present the opportunity. We show the risks. And in some cases, it just becomes a consensus decision. It's like, hey, well, it's pretty clear that we can't get over that EHS hurdle. I think there's just a no-fly zone. In other cases, it's more of a judgment call and we'll try to reach consensus and then ultimately, we have to make a decision whether move forward or not. But it really is -- I think there's real value in having that team approach that we look at it and you start to get feedback as to what do you think the team will accept and what's acceptable to us and you kind of know what the boundary is based off that discussion? But I don't know that we'd say any one of us close the deal.

That's a really important thing. Don't want to be say -- it isn't a one-person show. It's not Randy saying we're doing this deal. It's a team and every element of the team counts has a voice. And there's 4 of us sitting up here, but we've got deep teams that are helping us do all of this work so -- and they're involved in that group meeting. It's not just 5 people that are sitting around the table. It's as Haytham said, it's 2/3 of the company gets together and is involved in this debate. And Randy has done a great job of encouraging everyone to voice their opinion whether it be for or against, and when people are against, and we have to convince them of the merits that we see that mitigate the risk that they're concerned about.

Yes. And in some cases, that results in a brainstorming session. So what if we did this, I mentioned on the ESG side, there's been times where we think well, here's a problem. But what if we put something in the contract that require them to do an ESG initiative, would that help alleviate the concern. Yes, that would -- all right. Well, we're trying to find a path forward. So it does involve a lot of creativity to try to find solutions as a group.

And I think we're well over or we.

It is over to stay on schedule, let's leave it there, and we'll pick back up at the Q&A at the end of the program. So we'll thank you, gentlemen.

Okay. And with that, I'm Wes Carson, so VP Operations. So once we've gone through that whole deal concept, it's made through all those hurdles, then the actually mix it into our portfolio. So -- and then that's when get kind of take it over at that point and start managing the relationships kind of from there. Really, I mean, we've now got, as Randy said earlier, there's 45 assets in our portfolio. We've got 18 operating. We've got the 27 that are in that kind of development and other phase I mean, a fair bit of jurisdictional diversity kind of in there, as Randy mentioned, kind of across the Americas, primarily, but then Europe and our new additions in Africa and Australia. Really, we've got a massive diversity in that kind of partner company as well, though really that we've got everything from sort of the large diversified companies of the Vale, and Glencores and Newmont's right down to quite a few small single-asset companies that are in there as well and really shows how this model works kind of across the entire industry. A large part of what we do, once we've actually done the deal is monitoring and then working with those partner companies for how do we add value to those companies going forward. And we work with kind of a similar team that's working on the deals. We have systems from kind of the technical side, Patrick's team in the Caymans, legal, finance, as we're monitoring these companies and working with them. Now I mean the obvious things in there production forecasting, reporting the annual site visits that we do in that. But we also work really to try to add value back into the companies through things like technical assistance and our sustainability initiatives that we add back in to really be kind of that choice to our companies that we work with. So -- and that's really kind of that core value that we have in working with these companies as a partner and really trying to be that partner of choice so that as these things come forward and other streams come available with those companies, then we are that partner of choice that they'll go and want to talk. So in the next little while here, we're going to kind of focus on sort of core assets, really both kind of on the operating and the development side. I'll talk to you about Peñasquito, Antamina and Stillwater, which are 3 of obviously core assets in there that have been in the portfolio for a while. So try to put a bit of a more interesting spin on it. You all know these assets pretty well, but I'll talk about a few things that maybe you don't know about them. And then Neil will come up and he's going to talk about Mineral Park and Blackwater. And then we've got the privilege, as Randy said, of having a few of our partners in here. Martie is going to come and talk about Platreefs. And then we've got Alfredo for Sudbury, Voisey's Bay and most importantly, Salobo. And then Andre is going to come up and talk about Constancia and copper world as well. So on the year so far, we've had a great start to 2024. We're on track to achieved really kind of the midpoint of our overall guidance of 550,000 to 620,000 GEOs. So a really strong start to the year, led primarily by our core assets. So really Salobo, Peñasquito and Antamina have had a great start to the year, which is always a nice place to be. And really, we're kind of at year-to-date gold production around just under 180,000 ounces and silver at 10.5 million ounces. Reasonably even balance on the year between the first half and the second half of the year. The last couple of years, we've been much heavier weighted to the second half of the year. This year, about 52% in the first half and about 48% in the second half of the year. So -- and really, that's primarily due to what we are seeing the grades drop down a little bit at both Salobo and Peñasquito in the second half of the year. And for our 5-year, I mean, you heard Randy talk about, I mean, industry-leading kind of 40% growth over the next 5 years. We're moving from 584,000 ounces up to just over 800,000 ounces by 2028, which is really exciting that really led by those core operating assets in the growth at Salobo, Antamina, Peñasquito and Voisey's Bay. And then really, we've got kind of close following there in the assets that are currently under construction. So we've got Platreefs, Blackwater Goose, Mineral Park and the lower mine at Marmato that are all under construction right now and really coming online in the next kind of 12 to 18 months. And at the tail end of that 5-year period, then we have some of those other development assets in Marathon, Fenix, Curipamba, Copper World and Santa Domingo. So for Penasquito, I mean as you all know, Penasquito is Mexico's largest open pit mine. It's also the largest gold mine in Mexico, second largest silver mine, massive operation. You've got 2 open pits there that feed a large process plant that runs about 110,000 tonnes a day through that mill produces zinc and lead concentrates, most of what we -- where we see our silver from is from that lead concentrate. So it really depends on kind of as you which pit you're in. So often, you hear Newmont talk about moving to a higher grade zone that will actually be the opposite for us, really because they're -- we've got the 2 pits there, Chile Colorado and Penasco. Penasco is kind of the gold heavy pit. So -- and so when you hear in Newmont talking about they're going to a higher grade, it usually means they're moving back to Penasco out of Chile Colorado. Chile Colorado is the higher silver pit. So we were there in June this year. They were just kind of starting that transition, and that's why you will see the grades drop off slightly as we go into the second part of the year. So great site visit there this year. We really saw kind of this full potential program that Newmont has been implementing since the Goldcorp takeover really kind of coming into its own over the last number of years. You've seen over $700 million in value delivered through that and about 80% of that is really on the mining and processing side and really right back to basics kind of how they're doing their mining practices, controlling costs, just driving those kind of both cost and capital efficiencies through these programs. And it's been really, really great to see over the last several years and watching that progression. And it is one of the kind of the neat parts of doing the site visits. I mean I've been doing these site visits for the better part of 8 years now. Most of these sites I've been to at least 6x, some of them 8 to 10x, you really kind of get to see these snapshots every year of how these sites are progressing and where it's going to. And really, you can add a unique kind of view on that site. -- to the partner as you're there because when you're there in the day-to-day of everything, you don't necessarily see the same things that as you see these kind of when you see a snapshot every year of it. So we do really try to add that kind of perspective when we go on those site visits. Last year, as you're all aware, Newmont did have a challenging time with some labor issues there on site with the strike. They did do a very a solid job of managing that through. There was lots of pitfalls that they could have fallen into and it had previously been a challenge, and they're confident now that they've got that well set up. They've established the way that they're going to deal with the unions going forward and how that's going to go. And think really came out with a win-win solution that everybody can be pretty happy with there. And -- but they are really still focused on managing those relationships with the unions, with the local communities and how they actually do that kind of going forward. And it is a challenging place when you got such a large operation that really is a lot of communities very, very close. I mean, as you can see from some of the pictures there, you've got communities that are right in right next to the mine. So managing those relationships is an essential part of how you have that social license to operate and continue to be able to operate the mine. Newmont is also working on really exploration and continue to expand out. These pits are -- have been running now for quite a long time. They are looking at the expansion of Chile, Colorado with the Phase II expansion there. There's another phase in the Penasco pit as well as they're looking at and other kind of near area kind of exploration as well. So lots of good potential to continue to expand the mine life out there over time. Antamina, we've got really one of the largest base metal mines in the world. Pretty incredible operation to go visit. It probably is my favorite state visit to do of the year. It's an amazing place to go. Despite the elevation is not all that much fun. But other than that, it's a fantastic place to go visit run by really the joint venture of kind of BHP, Glencore tech and Mitsubishi, very successfully run there with really a local management team that does a great job of keeping that place going. As I said, I mean massive open pits that feeds 145,000 tonnes a day to kind of a standard plant there. The big news this year for Antamina really was the extension of their environmental impact assessment, and that really allows them to extend the mine life from 2028 to 2036, which is really elevating the tailings dam is the principal thing. They've also had significant investment in infrastructure over the last few years, you go to site and the number of capital projects that they're doing there is really quite incredible right now, and it's pretty impressive to see the amount of work that's going on there on site. And we'll start to see the value of that coming in, in the next few years, principally around they're moving the primary crusher, which is sitting on a whole bunch of high-grade copper zinc ore, which has quite a bit of silver in as well. So we'll see that bump in silver over the next couple of years, which is exciting. And then really, as that infrastructure kind of comes online here, we will see the grades start to tick up a little bit over the next couple of years. The other great thing to mention on Antamina is our work with Enseña Peru there. So we've been working with in Enseña Peru now since 2017. We've invested over $3 million with them every year when we go to site, we get to go and visit some of the schools that and see the real impact that program and getting to see the students and the teachers that are impacted that program every year is really fantastic and very, very much appreciated by the local communities and by Antamina itself. And on to Stillwater. So Stillwater, as you all, I'm sure now, has been in the news a little bit recently here. It is still the largest primary producer of PGMs outside of South Africa and the Russian Federation. Look in Montana, which is a challenging place right now. The economic situation in Montana has changed quite dramatically in the last several years. They call it the Yellowstone effect there, which really is -- I mean you've seen prices in big timber, which is one of the main communities there, houses that were worth $100,000 5 years ago or now we're $700,000 or $800,000 trying to run a mining operation there when you've had the cost of living go up that much has been a real challenge. That coupled with the primary issue of that you've had palladium go from $3,000 down to $1000 and that's their primary commodity. There is made for some challenging times for Stillwater. Unfortunately, really, I mean, with all the challenges they had the last couple of years, the start of this year has been fantastic. I mean they've managed to increased PGM production by 16%. They've dropped their cost by 23%. But unfortunately, that wasn't enough for them to really be able to continue maintaining. So last week, they did mentioned that they are shutting down the Stillwater mine, just the west side of the mine. They will continue to run the east side, which is the new mine or the Blitz project and the East Boulder mine. We've had great communication with them over the last couple of weeks just in what's actually happening there, why it's going. They are still viewing this as a short-term 3- to 5-year impact and hoping for the palladium prices to kind of recover from there, and then they'll come back up into really what is a great long-life asset, but in challenging times have called for some pretty dramatic measures there that they've had to put in place. So they are continuing to engage with their employees. Obviously, there is a significant reduction in workforce that comes along with shutting down that mine, which is unfortunate, but they are really working with communities and with employees to continue to build on that. And with that, I'm going to hand it over to Neil to talk about the hard 2 core development projects.

Thank you, Wes, and good morning, everyone. As you've heard, we've been very busy on the corporate development side. In the past 4 years alone, we've added 13 development assets to our portfolio. And as Randy and Wes both highlighted, they will play a large role in our 40% growth profile. We're very excited to have 4 of those development assets currently in construction, B2Gold's Goose project, Ivanhoe's Platreef project, which they'll be speaking to here shortly. And I'm going to provide some details on Waterton Mineral Park project in Artemis Gold's Blackwater product. Mineral Park is located in Northwestern Arizona and is owned by Origin Mining, a Waterton company. Waterton purchased the mine in 2015 after the previous operator Mercator Minerals went into bankruptcy. Waterton has since invested significant capital to improve confidence in the data and plans leading Wheaton to welcome Mineral Park back into our portfolio. In October 2023, we purchased a 100% silver stream for $115 million as part of the $600 million financing CapEx. Construction is currently approximately 15% -- or 50% complete with the start of operations on track for the first half of next year. The minus forecast contributed 770,000 ounces of attributable silver production annually to us over the first 5 years and 740,000 ounces annually over the remaining life of mine. Mercator bankruptcy was a result of the company being over-leveraged and production issues at the mine. The plan did not have the proper crushing and grinding equipment to process the harder primary ore, which led Mineral Park -- or Mercator me, to focus on the transition arc, which had poor recoveries -- and with our strained balance sheet in Mercator, we're operating with an old mining fleet, and we're not able to properly maintain maintenance. What recognized -- Waterton recognized the reasons for Mercator shortcoming and has put a lot of effort into preparing the mine restart, including significant drilling to better define the ore body, updated geological and resource estimates as well as extensive comminution and metallurgical test work. This work led Waterton to deciding to completely revamp the concentrator with a target throughput rate of 50,000 tonnes per day. They're replacing the crushing, grinding circuits and the concentrate filters. They're refurbishing and upgrading the flotation cells and they're going to modernize the planned instrumentation and controls. This slide has a few photos of the amazing progress at site, including the removal of the old SAG mill, installation of the new jaw crusher and installation of the new fleet. In 2020, Artemis Gold purchased from New Gold, the Blackwater project, which is located in Central British Columbia. In late 2021, we purchased gold and silver streams on Blackwater for $441 million. And in 2023, we increased the gold stream drop-down threshold to provide an additional $40 million in funding. In February of this year, Artemis announced the results of a mine expansion study, which now has throughput increasing from 6 million tonnes per annum to 15 million tons in year 3 and a further increase to $25 million in year. Our attributable gold equivalent production is forecast to be 31,000 ounces per year for the first 5 years and 35,000 ounces for the first full 10 years. At the end of Q2, Artemis reported construction was 87% complete and the first gold production is expected by year-end. When I reviewed the Blackwater project, the first 2 things that really struck me was, first, the strong continuity of mineralization and the second was just how well this ore body is drilled off. I was amazed I load the data to see that it's drilled off on 40-meter -- 50-meter centers with vertical drill holes. And the large portions of the ore body are covered by angle holes at 25-meter centers. And then Artemis going to further step to running an RC grade control program on 12.5-meter centers covering the first -- the first 8 million tonnes of production. So this is an ore body that is well modeled and understood. The land package is very large, and the ore body itself remains open to the north and to the Northwest. And this other figure here, I wanted to highlight the fact that the reserve pit assumed a gold price of $1,400. And the area between that reserve pit and a $2,000 resource pit contains 156 million tonnes, which grade 0.64 grams per tonne gold equivalent which is equal to 3.2 million ounces. And I'm pretty sure I don't have to mention or remind any of you in this room that gold is currently well above $2,000. With this last slide, I want to highlight some of the impressive construction at site. And with that, I believe we now have 5 minutes for a quick coffee break, after which we'll welcome Martie Cloete, the President of Ivanhoe Mines to present on Platreef. Thank you very much. [ Break ]

Hello, everyone. If we could ask you to grab your seats, we'll get started in just a minute.

How you are doing, it's Randy here.

I'm good in here, Randy.

Fine. So I just want to introduce Martie Cloete. She's the President of Ivanhoe Mines. As I mentioned earlier on today, our first ever investment into Africa is the Platreef project down in South Africa. I had the pleasure of visiting the mine site earlier, I think it was June of this year. And just I had been to the site in times past, and I just can't believe -- I mean the amount of progress being made on what I consider one of the most exciting and I think the largest precious metals investments in the world. And for us to finally have part of this incredible success story in Wheaton, really, really excited. And so I'm going to hand the floor over to you, Marna, and let you tell the story about what Ivanhoe is doing at Platreef. So thank you again for joining us.

Thank you so much Randy, and apologies I couldn't be there today. I would love to be in person. It's heritage day in South Africa. So it's a public holiday. So you're catching me during the graveyard shift at the end of the day. But always excited to talk a bit about what we do in Ivanhoe Mines and in particular, at Platreef. So I'll be changing my own slide here. So apologies if you see my finger on my iPad [indiscernible] with boarding of forward-looking statements. And then just diving straight to a little bit about Ivanhoe Mines. So just by way of introduction, my name is Martie Cloete. I've been with Ivanhoe Mines for 18 years. It feels like a lifetime, has started off sort of in different capacities and mining market relates the CF plan most recently as the president of company and we are company with a 16.9% market cap and it keeps on increasing. And we really buy our success on the ore bodies that we discover. We're well known for discovering Tier 1 ore bodies across the world. But the current version of mine and is really focused us on Africa. And what we've achieved at Kamoa-Kakula in the DC really speaks to our tractor and credentials as a company that can caters I just spent the past 2 weeks at the market to realize different investitures. And when I look at when I started sort of the story of flat relief, it was just like a couple of drill rigs in the middle of nowhere. And today, Kamakokula is the third largest copper producer in the world. So we're planning to replicate the same success at Platreef. And obviously, we are thrilled to have partners such as Wheaton, we assisted us in our financing to get this mine underway. So the start of the show today sa Platreef, I am going to dive straight in here and here you can see a little picture of what Platreef looks like today with the first sort of small plant, there will be 2 or 3 more modules that will be slightly next couple of years. We do call doing this mining stages because it's a massive ore body, and it will be a multi generational mine. I'm going to start with explaining to you why Platreef is so different. And we've tried to sort of capture it on one slide. And as I just mentioned, the Platreef ore body is multi-generational so significant exploration upside. We haven't even rolled out the whole ore body at some point in the development of the mine, it was still already turning at some point. It's by the world as PG project, it was the highest margin and the lowest cash cost, and I'll show that to you later in a slide. It's an industry disruptor. It will be mechanized mining. It's a highly productive mining method that we will use. And we target to become the largest PGM mine. And we do this and derisk this by developing this mining phases. We've got a diversified commodity basket of precious metals, but also significant nickel and copper byproducts. And then everything we do at Ivanhoe Mines, we do best-in-class in terms of our ESG credentials. And one of the things we are most proud of at Platreef is the way we did our ownership structure with our local partners, and I'll talk you through that in just a little bit. Maybe just to orientate, in terms of South Africa, so as most of you would be aware, South Africa is responsible for in excess of 70% of global PGMs produced. And both of those PGMs will produce historically on the Western land and the eastern land of the Bushard complex. But where Platreef is on the northern limb. And that's really where the future of PGMs are. It's next to [indiscernible] mine. It's a very different type of geology that we deal with come to what the minus on the [indiscernible] side as to what we mean when we say that. Maybe just speaking a bit about our ownership. So originally, Ivanhoe Mines 100% of the Platreef project. but we were fortunate in partnering with Japanese consortium back in 2011 with that purchase in stake in the plate project for approximately $300 million. And that really enabled us to start the initial short thinking something that takes a very long period of time to do this. And then when we had to apply for our mining license as part of South Africa, there's just slows your mic empowerment Boardnet. We did a vendor financed transaction, whereby we gave 20% to a trust that is owned by the communities adjacent to the Platreef project. And then 3% to the staff of the company and 3% to our vendors. So all the local suppliers that supply services to the mine are also partners in the mine. And this really helps in terms of our social license to operate because we all put in the same direction, and we all have the same objective in mind to make this mine a success. So just speaking a little bit about the geology and the mining methods and why that's so different to what we see on the Western and Eastern limbs. So that first picture that you see on your left-hand side, is what compressional -- it's about 0.4 meters to 1.5 meters. So if you think about the table you're sitting out, if you -- if you look below the table, it's like mining below the table, it's manual, it's labor-intensive, large workforces between 10,000 and 43,000 people. Good grade, but a narrow reef. And these mines have been going for the past 50 years. What makes Platreef so exciting, is that the reef is on average between 18 meters to 26 meters thick. So if you look at the shaft on head frame in that picture on your right-hand side, that is the thickness of the reef that we will be mining. We will use long-haul stoping and drift and full mining methods. Something that we've successfully implemented in the DRC, that's not really an underground mining jurisdiction. So we do that very extensive training, but really very efficient and very effective and very safe in terms of mining. So it's an easy mining method, high-grade and a very thick ore body mechanized. So you don't deal with a lot of workforce. Just a little bit about the journey we went through in discovering and developing this ore body. So we acquired our license service back in the late 90s. And as I mentioned, I joined the company in 2006, and back in 2006, we were still looking at a large open pit, low-grade open pit that requires the household relocation. And then in 2008, the landscape really changed when we started with a deep hole drilling program. And we discovered what is today known as Platreef. And that's in the Japanese consortium invested the money for the 10% stake. And we really started developing the mine thinking the first shaft that was first supposed to be an exploration shaft, then we converted it into our first production shaft. And today, that shaft is complete, and we're doing most of our underground developments through. We've completed the feasibility study in 2017 and we started with the early works of Shaft 2. So 2 will be the main production shaft. It's a large shaft that can host up to 8 million tonnes per annum. But it is a shaft that takes a long time to think. Originally, we were going to [indiscernible] but with the completion of Shaft 1 and our rethinking of using Shaft 3 to accelerate development, we can now develop Shaft 2 from the bottom. So that also helps us in accelerating this project. And then another significant milestone was in 2021 when we raised additional funding to enable us to get Phase 1, which is the production through up and going through a stream with Wheaton a $300 million stream, of which $200 million was linked to the gold and $100 million to platinum and palladium. We are doing an updated feasibility study on this rethink of our face development plan, and that will be published towards the end of this year. We are still busy with the development of Shaft 2, which is the log production shaft, and we are currently busy with the pilot hall at shaft. We've completed the pilot all at 3, and we're currently busy with the reaming Shaft 3 and the equipping of Shaft 3 will commence throughout next year. So yes, a picture always speaks 1,000 words. Yes, a picture of the completion of our [indiscernible]. It's basically production ready, but we have decided to defer feeding ore into it until the second half of next year, while we are hosting mainly waste through. We've got a bit of hosting capacity constraints through Shaft one. because we can only hoist about 1 million tonnes through Shaft 1, and it's more important to do some of the waste development so that we can enable ourselves to develop Shaft 3 and get to the ore body as quick as possible and basically start producing at scale. The Platreef ore body is a large-scale ore body, and it's a mine that really needs to be mined in high volumes to ensure efficiency. So yes, we talk about our plans for the future of fast expansion. And that will be accelerated by ventilation short that will enable us to get Shaft 1 to get capacity of approximately 5 million tonnes per annum. And that co-reduced the equivalent. So this is by no means a small PGM mine. t will be a large-scale mine. Once we bring online a shaft 2, which will be completed after shaft which really changed the sequencing of the shaft because it becomes really confusing. We will produce close to 1 million ounces of [ 4E ] and PGM. And here you can just the visual schematic as to how the sequencing will work. So as I mentioned, we already finished the [ concentrator ] for Phase 1, and that's the picture that you just saw in the previous slide. And once we get sufficient hosting capacity out of Shaft 3, we will immediately go into a 5 million tonne per annum mine, producing over 400,000 ounces of [ 4E ]. And then for PET, and that's probably about a 2-year horizon, that will give us the ability to raise 16 million tonnes per annum and produce over 1,000 ounces of 4BE per annum. And then as I mentioned, this still overturning all directions. So it's bones at the end of developing this is under the start. And then just speaking about cash cost because a market where PPG on a [indiscernible] the first one would hope. You can see that Platreef the bottom of the cash 14 on or 3 plus gold. So really a time change in terms of the PGM industry. And an exciting project in South Africa that we're obviously developing using the best sustainability credit as ensuring that we do everything in on a compliance basis and able of years and looking forward to building the mine that will be generating the government.

Thank you Martie. I don't know if there's any questions for her. Hopefully, you understood that. We -- the feed was a little bit broken, but I could understand enough of it. Hopefully, you guys could understand the same. But as any questions on Platreef ? I'm going to get you to speak into the mic so that Marna can hear clearly. You can hear me Okay, Marna?

I can hear you Randy.

We've got one question.

So do you think the North limb ultimately drives the East and West Limb out of business? And how do you see that playing out? Does there need to be a pretty hard platinum price cycle? And does that help you like it gives you potential refining capacity? How do you see that industry evolving?

It's obviously not something that we wish for, but I think it is something that is inevitable. A lot of the older mines are quite unsafe. Difficult to mine, difficult to act taste. So I think there is a transition period that will come that sort of mean towards the more most type of mines, it's safer. And yes, to provide active to [indiscernible] refining capacity to ensure that we have our own implies downstream beneficiation. But I think it will -- the industry will sort of reset itself, but it's not a deliberate strategy.

Yes, I would just add, I mean, it's one of the blessings of the ore body at Platreef is the -- one of the things that stands out is the thicknesses of 18 to 42 meters thick. The concept of mining versus the shallow reefs, there's no doubt that the benefits of Platreef first in cost -- firstly, in safety, actually, to be honest, 1 of the most important aspects, safety is one of the most important benefits there. But it's definitely going to -- this is going to revolutionize platinum, palladium production in South Africa. And it will have an impact. The pricing -- the commodity pricing itself is really what's going to drive what happens to the higher cost end of the market. But we're very excited to be invested into top-of-class in this space here. So Marna, I think that's it for questions right now. Thank you so much for joining us. And I look forward to the next time you and I get together. Hopefully, sometime next year should be down there again.

Thank you for having me. Thank you so much.

Thanks, Martie. Our next guest is -- yes, that's right. I was trying to remember which one. We've got a couple of more guests here. Alfredo Santana from Vale. Vale, of course, a very, very important partner of ours on multiple projects. Salobo being our flagship. It's also the Vale-based metals flagship. Alfredo is the interim CEO. I think until -- I think you would just say until the end of this week. I have to say he stepped in and done a great job over the course of the year as Vale has been going through their transitions, and so a really good partner to work with. And happy to have him here in person. We won't have the staticky feed that we just had all the way from the -- across the water. I think she was in South Africa. And so welcome Alfredo to the stage. Thank you again.

So thank you, Randy, and thank you all for having me here today. It's been quite a journey in VBM in fact. And we are glad to announce that everybody knows that from October on, Sean is stepping in. And for the next phase of the Vale-based metals carve out. This will be incredibly important, right. So first of all, my idea is today just to actually to give you an overview of how we are evolving in Vale-based metals since we started carving out from Vale S.A., right, in the energy transition metals, so if you can go to the next slide I do here, right? Okay. So first of all, it's extremely important to start with our one page that we call, right? It's what drives everything that we do in the company. So we started this on page 5 years ago in our process to improve life and actually, as you see, we exist to improve light and transform the future together. This was built inside Vale 5 years ago. And we -- this is our north as well for Vale-based metals. And as a energy transition, it's all about to improve life and transform the future together. So it fits perfectly with our vision as well. Key value for us, it's life matter the most. As you see act with integrity, behaviors that you're going to see here today obsession with safety and risk management. It's been a driver for everything that we have done in the last 5 years, I would say, and we have step changed quite a bit in the risk management in the company. So and today, we're going to talk, and I'm going to show you a part of our pathway to value and to become the best class and reliable operator. So starting with safety, I think, as I said, it's key 3 metrics for us, right? When you look at the total recordable injury in the company, we have done, I mean, such a great job in terms of bringing our total recordable injuries down to a level that it's not enough yet. We aimed at 0 harm in the company, but definitely, we are in completely different level. Even when you compare that, we have a lot of underground mining in our portfolio as all. So when you look at your process safe events, this is extremely important. 5 years ago, we start with this conception what we call the P1 event, P2 events is when anything that major happens with asset integrity. And you see that we have decreased a lot our events in the company since then with a lot of investments as well. So -- and then the high potential recordable injuries that in the end of the day, it relates to any injury that could have -- that could become a fatality or a life changed. So in terms of safety, we know that we are doing the right actions and going to the right direction, although it's not enough, right? Safety is a journey, and 0 is where we need to go. People. If you look at VBM today, we are more than 13,000 employees with a very knowledgeable technical team -- more than 40% of our employees had more than 10 years in the industry. We are very proud to say that 75% of our leadership pipeline is feed by internal talents and we have increased a lot the diversity, including women's in the workforce since 2019, we brought in more than 180,000. 1,800 women to the workforce and keep moving on the diversity and inclusion, equity and inclusion is part of our Vale, is part of our plan and strategy as well. So how we are located, right? So we have some operations in Canada. So Europe Thompson, Sudbury Basin. Right now, we're going to talk today a little bit more about Voisey Bay and Long Harbor, and also, we have a refinery in Port Colborne. We also have a carbon new refinery in Clydach, very well located in Europe. And when you look through the future in terms of circularity, we know that Clydach have great potential to start work with recycling batteries in the future, very well located in the market in Europe. And then we have a refinery in Japan, Matsuzaka, that's basically feed by our -- the operations that we have right now divest, but we keep 33% of the PTVI in Indonesia. So although we have -- we had our divestment there, we keep we keep well represented in Indonesia as well. And then when you go to Brazil, we're talking about the Tier 1 assets in copper. Salobo is the cornstone asset that we're going to talk here today. We also have Sossego that -- Sossego is basically where we're going to refine and we're going to concentrate all the work that we have in the regions. But I have lots of projects going on, what we call the soft hub in Brazil, that's close to Sossego facility that we're going to increase production in the next 5 years, considering that we are -- the actual mine that we have that we call Sossego pit, it's depleting. And so Tier 1 asset with a lot of growth in front of us. [indiscernible] is our [indiscernible] nickel operation located in Brazil as well. So if you look at the big numbers that we've seen ahead of us, we have put in place since last year, very well detailed asset review that probably a few of you have heard about, where we brought specialists to review 100% of our assets across the globe, and we made a plan to achieve the full potential of these assets. So the main goal is safety, as I said the first time. But get higher productivities and returns of the assets. So when you look to the numbers, you see that in copper, we are well located in the cost curve. And in nickel, we are going to go to the first quartile through this next 5 years. I'm going to talk about a little bit what we are doing in Ontario further in the presentation, considering that our operation in [ Antares ] is the leader of driving the productivity with the polymetallics in Canada, right? So production, we have seen an increase in our production. Our forecast for 2024, it's true with our guidance. It's 345 copper, 165 in nickel. Next year, we are finalizing our budgets and we're going to present this in December -- in December, our guidance to the market, but you're going -- you can expect a significant increase of product for the next years as well as we going forward in our plan. A very important point to talk about here is during the asset review, really, we really look at into the assets in a different way. And the key levers here very important for the change that we made in our plan looking forward. So resource endowment, mining methods, asset management, the flow sheet optimization, incredibly important for us in project development. So as a business, we are reviewing our capital allocations and really focus on how it's going to increase our returns in the short, midterm, and keeping the future protect as well. So I just talked a little bit about this slide right now. When we say that we have the right assets, it's -- because we are well positioned in good jurisdiction. We already have a very low carbon products. And if you look at your Voisey Bay Long Harbor, this is one of the lowest carbon footprint in the industry. A unique and diverse nickel and copper exposure in good jurisdictions, right? So right time is because of the transition. Even if we see that this energy transition metals, it can take a little longer than we first expected is something that's going to happen anyway, right? So there's no future without electrifying the world and we are very well positioned to supply the metals that the world needs for to transition. When you see the right action, I just talked a little bit about this grow production base, improve productivity and develop resource and endowment is the key levers that we are working on. So when you talk about our pathway, right, our people in safety, this will be always the first priorities that we're going to have. So being the global benchmark in safety, in the new pact with society. We do believe that without being sustainable, there is no mining anymore. So this is key for whatever we do, and that's where we are moving forward and the environmental commitments, right? So the climate change urgency low-carbon mining is part of our strategy as well. So if we look at our relationship with Wheaton, it's I would say it's an incredible, healthy relationship over 10 years right now. So we have started in February 13 in Salobo, 25% of the gold stream, 7% in Sudbury, and we moved to right now, 75% of gold production. In Salobo, which is great. And when you look at Voisey's Bay, 42.4% of Voisey Bay cobalt production until 31 million. And then after this 21.2% -- and looking to Salobo 3 that we just completed last year, and we basically right now have already reached 90% of the nameplate capacity of the production in Salobo. We are increasing our capacity in Salobo complex as a whole from 24 million tons to 36 million tons. So this would not be possible if it wasn't for the partnership and the relationship with Wheaton Precious Metals. And I'm very glad, as Randy said, it's a very healthy relationship that we want to keep for a long time. So talking about Salobo, my time is almost gone. Just to bring some numbers, it's Salobo is cornerstone asset, right? It's 1.1 billion tons. That's 0.6% copper, 0.35 grams per tonne in gold I don't know if you all know this, but Salobo is the second largest gold production in Brazil, right? So sometimes people don't know this because it's known as it's a copper mine, but in fact, it's the second largest gold mine in Brazil with a lot to go, lots of reserves and resource we still have over there, in -- with the life of mine for more than 40 years, and it's been great. I've been in Salobo last week. I was there last week in with Vale investor tours. And it's incredible to see how the assets and how we are improving over there. So -- as you see, when we talk about Salobo 3, the importance of Salobo 3 in the Salobo complex, we reached our peak of grades between 2017, 2019 with 0.95%, 0.97%. And then we naturally decrease considering the depletion of the mine. And with Salobo 3 coming online in 2023, we are coming back to 220,000 tons of production. Considering that we are recovering the lowest grade material that we have in Salobo. And we still have a lot of room to grow not only Salobo, but we call the North Hub as well that includes other facilities that we have in projects for the next years. So a few of the good results, I would say that we are seeing since we changed our strategy. And you see that when you talk about Salobo plant 1 and 2 we have increased 21% of the quarterly throughput in those plants since 2023, and we're going to reach its nameplate capacity in 18 to 24 months from now. If you look at the resource potential and optionality that we have in Salobo, as I said, we still have a lot of optionality in terms of low grade or in terms of the grades that we have in the mine. But also, we have underground optionalities in Salobo. So it's an amazing asset with as I said, our current reserves, 1.1 million tons and the current resources, 500 million tons at 0.47 and 0.23 at gold. However, we keep working to add more resources into the plant and the underground options here, it can change the game in the future as well. So talking a little bit about Sudbury and Voisey's Bay. Sudbury, we really changed the way we look at the way we worked in Sudbury Basin. So the focus on productivity and change mine methods and also cut off grades -- it's been great and it's being -- bringing a lot of good results. So if you look at here, if you compare from 2022 to now, we improved 50% the development rates -- we are up to 30% in mining rates and also we are up to 30% in processing tons. Only this year, we're going to add 50 million tons of additional ore mined into the process in the Caravel mill. And this is mainly driven by the stopped. Probably you see some announcement that we did recently. We had a partnership with this and to start up the stop pit mine, open pit mining Sudbury. This is the first open pit of the projects that we have in mind in Sudbury. And then [indiscernible] Garson and Totten, the change of cut-off grades and mine methods, it's increase in our ore mine year-to-date, and this will be continuously improving through the cycle. Voisey's Bay. Good news. I was talking to Randy earlier today. Voisey's Bay will be completed VBME that we call Voisey's Bay Mine Expansion that basically means 2 underground mines. So Reedbrook it's already operational. And Eastern Deep is the last one that will start up right now in the Q4. So projects basically done. Main production starts in Q4 2024, ramping up from now until 2025. And in reaching the capacity of the project through 2026 onwards. So Voisey's Bay with Voisey's Bay in our portfolio, we are talking about to add Voisey's Bay full capacity will add through long harbor 50,000 tons of production in the next years. Also improving a lot our cobalt production through our portfolio. So here, it's about the Voisey's Bay, how we're planning to go. You're going to see that from 2025 to 2026, we -- it's a good -- it's a big shift, right? We are moving from 1 million tonne to 1.9 million and then going to 2.5 reaching its capacity in 2027. And we are talking about annual production 2 kilo tons of copper, 42 kilotons of nickel, 2,000 tonnes of cobalt. So when you look at the portfolio and how we're going to move on from now on, I would say that as VBM we are very well positioned to do the next step of the business. So 3 extremely important things that we have accomplished to this point. We carved out the business. This was completed last year. And right now, we are restructuring the business, we finalized the PTVI transaction, and we did the asset review, and we have already shifted our mining methods in our plan that you're going to see public very soon in end of November or December. Right now, we are to a point that our new CEO is arriving this week and as we said, we had the future phase in commodities and exposure, we are very ready to go as a VBM. We do believe that we have a huge potential with us. And that's basically what I would like to present to you. Thank you, Randy. Thank you, Wheaton to have me here today, okay.

The question got time for one question. Right over there. The online people don't get to hear it as well then.

We've been hearing from those who attended your site visit last week that there's quite a bit of exploration happening at Salobo. Would you be able to put that into context for us in terms of like what's being spent there this year versus last or perhaps number of drills there today versus last year?

I would say that in the -- when we reviewed our plan last year that we call the asset review, we shift a lot of investment on exploration all over the place. So we basically jumped from what we had planned from now it's more than 30%, all over the place, not only Salobo, but Sudbury and our focus, as we said, we are shifting a little bit our folks to close to near mine exploration, the short -- where we need to have more data about where the ore bar is expanding. We are keeping our exploration in greenfields as well, but we bring a lot of focus to what we have close to us. So Salobo has increased a lot of drilling as well and not only Salobo, we have a huge and massive project that is still in FEL1 that we call Paulo Afonso in Brazil that's very close to Salobo. But in the end of the day, we talked about another Sossego in terms of sizing when this come online. So that's why we are moving -- we're really looking to this place to improve drilling and exploration, so we can move faster with these projects, okay?

Again, thank you so much. Alfredo. Thank you. Thank you for everything you've done and look forward to continue working with you, yes. Our next guest that's going to come up -- first off, let me just finish off. Really excited about and I know we're doing a tour down at Salobo next week. And so always exciting to get back to that mine site. It's one that we recognized the potential long time ago. And I just think that the way things are developing within Vale, the Base Metals division, as it's getting its own identity and it's separating itself. Nothing but good things can happen from sharing a flagship with that separate entity, and that's what we have at Salobo. But we also have the benefits, of course, at Sudbury and at Voisey's Bay, too. So it's a -- it's a really strong relationship that we intend to continue growing. So next up is Hudbay. Andre Lauzon is the Chief Operating Officer of Hudbay. He's going to talk about -- someone reminded me about a year ago, we were actually doing a site visit at Constancia done in Peru. And so it was a great visit just showed the potential of that. But our relationship with Hudbay has been a very long one, and it's covered a multiple of assets across the board. It's a group that we have a lot of respect for. They've done great things. I'm going to refresh. There's one story. I don't think it gets old, but having the Peruvian mines minister tell me that Hudbay set the example for how Canadian companies should invest into a country like Peru. I still remember that story. And I think it's reflective of the people that are in Hudbay how much they embrace that. So the stage is yours.

Thanks, Randy. Okay. So I'm going to skip through a few of the slides just to keep it going at the beginning. Just suffice to say, Hudbay is -- it's a diversified mining company. We have other operations, other with them with Wheaton, copper and precious metals and -- but I'm going to focus today on Constancia and copper world. So I'm going to skip through just ahead of those senior deck, if you like. Just the next one right there. So thank you for having me here. And when the team asked me to come and present today, they said they wanted to hear from the operators. And so I sat last night and I thought, well, what can I say, because a lot of you have heard about us and followed us in a variety of different forums. What can we see and tell you today that would be different than our IR team and perhaps Peter, our CEO; and in more investor relations message. And so if I was to start it off and say, there's -- I have a favorite philosopher around business, and his name is -- some of you may know his name is Edward Deming. So he is an American philosopher born in the early 1900s. And he has a saying, and he says, every management system is perfectly designed to get the results against. And so I want you to remember that as I go through this presentation and I show you some of our results -- and if you take that the next step and you say businesses, businesses are groups of management systems. And so if you take the next step on that and you say businesses are perfectly designed to get the results again. And so as I take you through the areas that we operate, how we design and execute capital projects, which we're very proud of some of our successes the operational excellence and the productivity that we do and how we build that into our next phases with Copper World in our future. I want you to leave you with the -- you'll see, and I'll touch on some of these management systems as we go through this. So you leave with the confidence that independent of whether I'm in the seat or someone else, management systems are designed to have reproducible results and resilience in companies long into the future, and that's exactly what is. So I'll just step through the next one. So we'll start off with Constancia. So Constancia, as Randy mentioned, is located in Peru. It's in the Southern Mining corridor, if you look down the bottom right. We're a smack dab in the middle of some very large operations, Las Bambas and Glencore, Antapaccay. And we believe that there's way more than Constancia here and if you -- I skipped over the map of all of our jurisdictions, but one of the things that we purposely design is we always explore in very safe jurisdictions, and we believe where we operate in North and South America meet that criteria as well as we look for long-life assets. And we invest in areas that will go through multiple cycles where commodity prices and benefit our investors. If I go into Constancia, the development time line and Randy and the team, the Wheaton team were involved right from the beginning with us on this journey. It's something we're really proud of. And what I would say is there's a lot of special things and there's some things that are in. And so it's a very impressive time line from when we purchased the asset to a very short bill to delivering a result that was only about 10% above the sanction cost, with about a 5-month ramp up to commercial production, which is just stellar. But in the background, you should know that it's no different than any other project. We had issues with water. We had issues with geotechnical 3 months in, we are 10% growth on the project. But our process is, and if I go back to what I say about management systems are design, we design our organization to be with very low bureaucracy. We are able to salvage that build to the point where we held that 10% growth right through the end of the project with having very close line with the decision-makers to making very quick, smart, and we were able to call it fail fast, if you will. But to this day, companies, 10 years later, keep coming to see us to see how we did it. How did you do it? And so what we're doing, as we look forward into Copper World, and you'll see in a couple of slides as I get to it, obviously, we take some of the learnings on the geo-tech and water. We're currently drilling those today at Copper World, but we're setting up Copper World with the exact same philosophy for a very, very non-bureaucratic line of sight management on the floor, making quick decisions, because it's impossible to design something that's perfect. And you need to course correct along the way, and we're very good at that. So Constancia, it's a large copper, molybdenum, gold, silver operation, about 100,000 tonnes of fine copper a year. Our mill throughput is around 90,000 tonnes per day. The -- you'll see in some other slides as we come up, the -- by design, it was around 75,000 tonnes per day, and you'll see some productivity slides on that. It has a long life ahead of it, well into the late 2030s, and lots of exploration potential around. And it's a very -- we're very proud of this asset. As Randy said, in terms of how we operate, we're seen as a mining company of choice in the region. And you saw that a couple of years ago when we had -- unfortunately, there were some -- was some uprising in the country. Our communities came in around us and they supported us, and we were able to operate where others were shut down. And so we're really proud of the work that our teams do on the ground and the interactions that we do with the local community. So it's -- we feel very comfortable operating there in Peru. In terms of where we are on the scale, and it's not to point out different names on it, it's more -- we're at the lower end on a cost per tonne mined and milled, and so we're very proud about the efficiencies that we build in every day in improvements. And the teams are just a very, very energizing process improvement machine. And so Constancia, I mentioned the nameplate. If you look on the far graph on the left, it's -- the nameplate was around 75,000 tonnes per day. We're currently operating above 90,000, and we're working on plans. I was on the phone last night with the Peruvian team around additions of pebble crushers, another mill to grind it a little bit better, optimization around fragmentation and looking for that extra 10% beyond that. I'll skip through this, but it's just a standard mine, open pit, primary concentrator. We ship concentrate to port. In terms of productivity, I think there's 2 things you can take away from this slide. It's -- so this is from a third-party consulting where they reviewed a number of mining companies in South America. And in terms of our grinding and our labor productivity, we're among the top. The mill is outperforming. The crushing circuit, I think it's a little bit overdesigned. But if you take it back to our design principles and our management systems I talked about at the beginning, we don't overspend on CapEx. We do fit for purpose and we try and squeeze the asset. And so the results that you see on this slide are a combination of the 2 is where maybe others may not be showing us utilizing their equipment as much. In some cases, it was overdesigned. And in others, we are running it with about 95% availability. So we're doing best-in-class maintenance practices as well. From the environmental side, so we've gone -- we're really proud of our performance in Peru. I think we're one of the only companies to go 5 years without an environmental, call it, write-up from the government agencies. We're very proactive. Our teams are constantly looking at ways to improve recycling, everything to the food that we have at our camp, and so it's something that it's all part of our social license to operate in Peru. And I think it bodes well for us in terms of as we look to do future expansions and permitting exercises. I think we have 3 or 4 different permit applications in the pipeline right now for production increases and mine life extensions. From a logistics standpoint, we have a top-notch team. So it is -- until you actually drive it, so you go from 4,500 meters above sea level down, so it's quite a long drive. It's a 2-day journey to bring the concentrate to port and come back. We have about 200 trucks on the road -- sorry, 100 trucks on the road. And you'll see on the next slide is there's quite a number of logistics and road maintenance along that we work with communities to keep the roads in good shape and safe. And we work with our community partners as well in terms of hauling the fleet, which will come up on the next slide. So we work with the Chilloroya community and the community of Uchuccarco and helping support them and train them with getting up businesses running. And when we say, again, back to every system, management system is perfectly designed to get the results it gets. When we had those with the uprising with the President in Peru, the operators of these trucks that haul our concentrate have a vested interest in our operation continuing. Their livelihoods and their businesses come to pass with our operation, and they came to support us. And so these trucks are all to -- we manage them just like our own fleet. All of them have fatigue management systems, cameras in there. We use Apple, iPhone watches to monitor their sleep conditions the night before. So all of these are treated as if they're our own employees, and we brought the communities up to a standard that we would call our own. A little touch on where we are. And so it's related to Constancia, so we do have a lot of exploration potential in the vicinity. We're very excited about that, and we've been working on exploration permits, which we hope to get in the near future. What you see on there is a radiographic map that shows Salazar deposit, Constancia. You can see the purple color, Pampacancha, what we're currently mining now. And you could see the large radiometric anomalies to the North, which we're very excited about, and we expect to be drilling there in the near future. I'm going to jump into Copper World quickly. We have 3 minutes. So Copper World is in the United States, again, in a jurisdiction that we quite like. It's a world-class deposit. So we -- it's one of the highest-grade open pit operations in North America. It's 0.54 grade. We broke it up into 2 phases, so this is going to be a long-life asset. So the first phase is a private land plan. We're in the -- very close to completing the final permits on this. We expect that in the very near future. We just recently received an aquifer permit, and we're waiting for the air permit in the next quarter or so. And this operation, although it shows on there the smaller opening, we expect it to go on to be a much bigger operation. Similar to Constancia, you could fully expect this operation to go 50-plus years. So this is an operation that fits with our strategy around meeting multiple long price cycles as we go through. It's a modest CapEx. It's not something that you see a lot of the major projects at $1.3 billion. We're looking at going into feasibility into next year. We'll be refining that CapEx and hopefully to a project sanction in mid-'26. And just to keep on track, I'll go through. I think I covered most of that. Go to the next one. In terms of greenhouse gases, we do have greenhouse gas strategies at all of our operations, and this one is no different. We've assessed the greenhouse gas footprint. And in part of it, we look at Scope 1 and Scope 2 greenhouse gases. And in this case here, what we're contemplating is an Albion Process located to make made-in-America copper. It fits our strategy, both from greenhouse gases, but even more so as the world markets are more and more volatile and tensions around the world. We believe that there will be a strategic advantage for us to make finished-product grade in the U.S.A. And it also makes more money. In terms of our capital cost intensity, so Copper World is -- the initial capital cost is relatively low. We're going to be refining that, but it'll still be in that ballpark. It's a little bit lower than Constancia. But if you picture the difference, Constancia was built at 4,500 meters. The site itself was building a small town, so our camp facilities can house several thousand people with food and sewage treatment and the like. And so here in Tucson, we're 20 minutes away from 1 million population city. So it's very, very close. So it's not surprising that the capital cost is much lower. In terms -- and then to just verify, it shows the elevation and capital cost. I only got 23 seconds. We have a time line to bring this forward, so we're really excited about Copper World. It's a world-class deposit. The first phase will get us into production at about a 60,000 tonne a day operation ramping up. It could ramp up to 90,000 or 120,000 or just go for many, many years at that current rate. You could see the milestones that we've gone through. And we're very, very close right now. Like I said, we've received the aquifer permit back in end of August, the APP. We're waiting for the air quality permit, which is on track. Within the next several months, it should come. And then our intention is to initiate a JV process to balance our financial risk as we go into this project. And Wheaton is a partner with us on this. They were an initial investor in what used to be called the Rosemont project, and we're happy they're a partner with us on this one here. And so with this last slide, if I was to summarize, in terms of with Copper World, it is on a series of -- whether it's grade or cash costs or annual production, it's going to be a top-tier copper producer in the U.S. And so I think we've gone through the majority of the hurdles. We've learned a lot about permitting in the United States over the last several years. And I think we have a plan that we're very confident on and robust to go through on that. And with that, I think I'll take some questions if anybody has questions.

We have time for one question if anyone's got one for Copper World or for Constancia or for Andre. Back corner there.

Just on -- from a Wheaton perspective, with the higher-grade satellite targets around Constancia, Maria Reyna, Caballito, just wanted to ensure that the land package that you guys have encompass those targets from when Hudbay starts putting out exploration results. It's relevant to you, guys. And then a second question on Copper World. Obviously, that deal was signed with Rosemont. The projects changed a bit from then. Just wondering on the upfront payment and terms of that agreement, if there's any negotiation or when we might see a resolution to that matter?

Sure. So the first question, yes, so we have some very exciting targets in and around Constancia. We have a long history with Wheaton. They've been a great partner with us. We've worked on agreements, renegotiated agreements. We've worked together in Manitoba from 777 all the way through. And so with the size of what could potentially there, and we don't know until you put the truth detector and you actually drill the holes into the ground with the size of what's there, there's no doubt that there's going to need to be funding and partners, and Wheaton is obviously -- have been a very good partner for us. And so we'll deal with that, I guess, once we discover it, but we like working with Wheaton. In terms of Copper World, so the original agreement was based on the 90,000 tonne per day plan, which was called the Rosemont plan back in 2016. It was -- the agreement goes way back before that. It is a very different plan today but still a very, very long life. And I'm confident that together, we're going to figure out if there's an amendment that's needed that we will come up with something that's mutually beneficial for both of us as we've always done.

Yes. I'll just add, we've got a strong -- very strong partnership with Hudbay with the entire team. So just to clarify, that deposit is outside of the existing area of interest, the new exploration. It's outside of the area of interest, but we're happy to work with Hudbay to help them advance this on a go-forward basis, and there will be capital needed. It is the beauty of this industry. And so hoping that we can expand our relationship down there. At Copper World, yes, the original deal actually goes back to 2010, I think it was, when we signed the original deal on the original Rosemont project. And the Copper World stuff is captured within the area of interest, and so it is part of the stream itself on a go-forward basis. We saw that potential, the Copper World potential. I still remember hiking the ridge to the North and to the Northwest, mainly because I wanted to see what Tucson could actually see about Rosemont because the NGOs were complaining about another mine on the horizon. And in my eyes, there was this ridge in the way. So I climbed up on this ridge and there was copper staining all over the place, and that is what we now call Copper World is that whole area. There was some old workings there and such. And it's turned into that. So we always felt that, that was going to be the dessert on top of the main meal, which was Rosemont. And we're now looking at probably having some dessert before we actually get to the main meal itself. But we haven't sat down. They're still firming up some plans in terms of how it will go forward. My hope is, and maybe call me a little bit naive in this, but common sense should prevail. One of the things that I find so frustrating about permitting down there is the design and the plan that Copper World has, has so many inefficiencies in it in terms of having to fit waste dumps and tailings and storage onto squares that don't -- there's an extra cost. And that cost is an environmental impact that elevates the carbon footprint because you're having to inefficiently operate this site. And so my hope is ultimately that it would embellish and collapse into the -- being able to operate on federal lands and operate the site efficiently with as little carbon impact as possible and producing as much copper and maybe a little bit of gold and silver for all parties, right? So we're -- there will be a discussion in terms of how we go forward on that. It's an asset that we're quite happy with in terms of the way it's developed. And so we're going to be, again, a very supportive partner in that whole process, but that hasn't happened yet. So with that, Andre, thank you so much. Really enjoyed it. We're definitely behind schedule. So we're going to hotshot a couple more guys at you on stage. Patrick's first up, and enjoy.

Thank you, everyone. I am excited to be able to talk about Wheaton's sustainability program. I will be going pretty quick as we are running a little bit behind. First off, obviously, sustainability is a core value for Wheaton. I've been with the company since 2012, was overseeing the program since then, picked up the title of Chief Sustainability Officer about a year ago. But again, we've always been focused on this. And when we think about sustainability, we think about it in 4 distinct areas. First off, having a strong foundation, and that's based on our governance and our policies. Secondly, through the community investment program, which we have talked about at length before. And you'll hear more about it today, but it's something we're exceptionally proud of. On the ESG due diligence side, we talked about that this morning, so I won't rehash it. But what I will say is ESG due diligence doesn't end once we sign the deal. We look at -- so we're continually looking at and evaluating our partners' performance. For the key assets, we will actually even visit those assets and do community investments on an annual basis. And lastly, by doing what we think is the -- being leaders in the reporting and the disclosure and the voluntary commitment side of things. We were the very first streaming company to sign on to the UN Global Compact. If we look at governance, really, everybody in the company is involved in sustainability, straight from the Board, the senior management team, at the employee level. There's opportunity to help support my team as well as participate in one of the 4 different committees we have down within the company. I will also point out that ESG KPIs are integrated into the corporate and executive remuneration program. I always have a hard time. It's like a tongue twister. So it is well aligned. Everyone is well aligned with the importance of sustainability. On the reporting side and disclosure, we were the very first streaming company to put out a sustainability report. We are still, I think, the only streaming company to put out a stand-alone climate report. And when we look at what's material to Wheaton, we do a double materiality assessment. So we not only look to see what -- how things will impact Wheaton, but also how they will impact the environment and society as a whole. So really, that upper right-hand corner are the topics that we really focus on when we're looking at materiality. On our strategy, there are 8 specific topics that we typically have or that we have under our strategy. Each one of these has individual goals associated with them. And we do assess those on an annual basis to make sure that there's room -- if there's room for continued improvement. I will also say that this strategy is aligned with the UN Sustainable Development Goals, the SDGs. Again, that was part of our commitment on the UN Global Compact. Now this is something we are exceptionally proud of. This is something we've been doing since 2009. Our community investment program has put over $45 million back into the communities around our offices, but also around those mines that we have an interest in. We have a standard formulized program in which we dedicate 1.5% of the average of the previous 4 years net income that goes into the budget each year. Net income has been growing, so our budget has been growing. So we're quite excited about what we're putting back into the ground. 2/3 of that does go to our partner program. So again, this goes into the communities around the mine sites. You can see we have 4 different pillars in which we look to donate: health and well-being, education, climate and nature, and community development. You can also see the SDGs associated with each of these pillars. As I said, most of the money goes into the mine sites, around the mine sites. This is a snapshot of 2023, in which we put in almost $7 million into the various communities. You can see the global reach throughout the Americas, primarily Latin America and also up in Canada and North America. I am excited. By next year, I think you will see a dot over to the right, given our interest in Africa. We've got some really good projects we're looking at funding there. So what are we going to do in the future? It's pretty much more of the same, continue to progress on our sustainability strategy, continue to put money back into the communities. We are currently in the process of doing a physical and transitional climate risk assessment on a site-by-site basis. So we're working with our partners to really get a good understanding of what the risk associated with the various sites are. And we are proactively looking to update our disclosure in line with the IFRS S2, which is the climate change reporting. That is something that is a multiyear commitment, a multiyear process, and we should have initial results showing up in our 2024 climate change report. And finally, on climate change, we do have the Future of Mining Challenge. Again, Randy has already alluded to this. It's something that we're very excited about. Improving the efficiency of mining is only going to benefit everybody. That is my time. And I think Gary is next to talk about financial performance.

Okay. I will also try and be quick. This is really just a slide that gives you a snapshot of the extraordinarily strong margins that this business model generates. And at today's commodity prices, we're well over 80% on the cash operating margin side of things. One element that I don't think a lot of you sell-side analysts are tuning into is the proportion of our production that's tied to a fixed payment as opposed to a percentage of spot. And a fixed payment gives us much more participation in the upside than a payment that's tied to spot. And right now, almost 90% of our production comes from fixed production payments, so that gives us a lot more leverage. And just to give you an example of what that means, we've put together this slide that shows you that when you compare a 20% production payment to a fixed payment and you vary the price by 25% and then 50%, you can see that our cash flows rise by 31% and 63% on the fixed production payment production. And so that's a 25% uplift relative to the floating production payment. And I think that warrants consideration when you're looking at what our PNAV multiple should be relative to our peers. This slide is one that I think you guys are well aware of. It really just tracks what our actual cash flows have been, which is the green line, and compares that to what we had anticipated our cash flows to be when we made the investment decisions that we did. And you can see that at virtually every point along the curve, the actual cash flows that we've generated from our investments have been -- have exceeded the expected cash flows. And we're very well positioned to benefit from the current bull market cycle on the precious metals side of things. Our dividend, I would argue that our dividend has been very progressive. This is a snapshot of the last decade, and our dividend has tripled over that period of time. So on an average basis, it's increased by over 13% a year. And when you look at our current dividend relative to our revenue, we are paying out at the highest level in the space. This slide, I just would point out that the slide in your book is a little bit different than this. We caught an error in the slide. But really, what we're showing here is that we have not relied upon equity to finance our growth. We've only relied upon it to the tune of about $3.3 billion. And we've repaid $2.2 billion of that through the dividend. So we -- and we do not view ourselves as requiring equity to grow. So we will be -- we expect to pay for all of our growth through cash flows from operations or, if we had to, drawing down on the $2 billion revolver that we have available to us. This just shows you that we've basically recovered every dollar and then some that we put into the streaming space over the life of the company, over the 20 years that we've been in business. This shows you that we have a balance sheet that we can use to execute on our growth strategy. And it also highlights that we're generating over $1 billion of operating cash flow annually at current commodity prices. And it shows you how those -- that cash flow changes with increased commodity prices. And you can see that, for instance, if commodity prices increase by 10%, our actual cash flows will go up by 13%. And therefore, we're getting about a 30% leverage to commodity prices with the business model that we've got and with the portfolio that we've established. This is another item that I think warrants consideration in coming up with your price targets for Wheaton. You look at our resources up to measured and indicated. And we have about 37 million gold equivalent ounces in that category -- in those categories, proven probable and measured and indicated. 23 million of those are in -- relative to operating assets. And I would argue that the market is really in kind of a we'll believe you when we see it mode, when it comes to giving us value for development-stage properties. And so I don't think we're getting full value for those development-stage properties. And so what I'm trying to show on this slide is that 20 -- well, this says $24 billion of enterprise value. We're more like $28 billion today, which just actually puts a bigger exclamation mark on my point. If we're not getting value for our development-stage properties, we only have to pay $2 billion of additional investments to bring on another 14 million gold equivalent ounces of resources. And that would suggest that there is very significant upside to our stock price, something in the neighborhood of another $5 billion to $7 billion of value, that should be recognized when those development-stage properties start producing. This slide really just shows that what we've set out to do as a company was give investors a different way, and we would argue a better way, to get exposure to precious metals. And this just shows you that we've outperformed gold, silver or any one of the precious metal equity indices over whatever time horizon you want to look at. And we've beaten those indices by a very significant margin. So then just a snapshot, mic drop type of final statement. We've put just over $10 billion into streams. We've recovered more than that already. We have 28 years of reserve life. And if you look at resources, that go -- it more than doubles to 60-plus years of average mine life remaining. We're generating over $1 billion of operating cash flow annually. That grows by 40% with our growth profile. And as I said earlier, we do this postmortem analysis, and we've generated over 17% return on every dollar that we've invested into this stream. We have tons of opportunities in our pipeline. We're extraordinarily well positioned to execute on those opportunities. And I would also say that we are a company that cares. And that, I think, has been reflected in our very, very high ESG ratings. And with that, I think I'm turning the mic over to Randy.

Shall we bring you guys up too? And you guys can have a seat. We've got some time for -- well, we really don't have time, but we've come a long way. So tough, maybe a little bit late for lunch. So we have some time for some questions to the broader management team. And so we've got one over in the corner.

Just with the -- you guys used to put up a chart in the presentations on the timing of deals. When you see a price trough, you're typically more active. Like in the current environment, there's more competition, there's higher gold price. Do you see some challenges to maintaining that price optionality that you guys like to get in structuring the deals? And then maybe a follow-up on that, you were kind of talking about the competitiveness and providing more full suites of financing. Do you foresee any challenges at maintaining those necessary safeguards that you've been putting in place on traditional stream financing?

I'll let Haytham...

Sure. Thanks for the question. Tucson, yes? It is an incredibly competitive environment right now, and we are having to be quite creative. We're not seeing less deals in this current environment. We're actually seeing more transactions. Surprisingly, we just finished 2 conferences. And the -- although we're at $2,500, $2,600 gold, it's still very, very, I would say, not an optimistic market out there for a lot of the juniors. You haven't seen the equities perform as well. So they're still struggling, and that's where a lot of the opportunities come for us. In terms of the actual larger diversifieds, you are seeing some looking at streaming non-core metal such as gold and silver and a lot of the time, platinum and palladium. We are, I would say, 99% of our time is focused on gold and silver at this point in time.

Go ahead.

I was just going to respond to your -- the second part of your question there, Shane. I would say that we -- we're still holding the line on those protective measures. I think in light of what's happened to one of our competitors, it just really puts an exclamation mark on how important those elements are. So I don't see that changing.

That said -- this is on, right?

He's got his mic there.

I've got a mic on right here. We are always faced with that tension. Every time a deal comes forward, if we're in a competitive process and we get a bid sheet that comes to us and it has price sharing or it doesn't have a parent company guarantee, back to my earlier point, that's when we have to get together as a team and say, what are we going to do, what goes to our core values, what goes to our core message to our shareholders, and just stick to our guns. And we've ridden this through before. There was a period of time back when silver price was spiking where we were getting a lot of pressure to do price sharing, and we really resisted that, potentially at the risk of losing some deals. But we felt strongly about it, and we did that, and that has kind of weathered that. But again, it's a competitive space. We get these challenges all the time, and we just have to focus on our core protective structure.

The one change that we have seen, and it was highlighted on Gary's presentation, was most of the new transaction -- pretty well all the new transactions now will have a production payment that is a function of the spot price. And so there is a measure of price sharing through that mechanism. That does help from a sustainability perspective. Although if you're in assets that are first to second quartile, I don't think that really makes a big difference. But that's definitely something that has come into the system. So most -- just about every new stream that comes out now will have a production payment that does that. But fortunately, we have a pretty good portfolio, as Gary highlighted, of assets that do have that fixed production payment on a per ounce basis. But I think the other side I would say is that there is -- and it was mentioned earlier on, there is an increasing appetite for one-stop shop. We'll always be stream-heavy in that, but we'll be competitive in that space. We're not scared to stepping in from the equity side to provide some support. We don't mind a bit of debt, but whatever deal we're going to do will be dominated by the stream being the biggest portion of the value. We think that actually works the best for most of our partners because -- especially if it's a non-core asset within their own portfolio, it unlocks value for everyone in the best way. And so that's our whole focus.

And I think stay tuned in some of the things we're doing here over the next little while. You'll see a lot of creativity that doesn't get rid of the core stream that we're doing, but provides some flexibility over time.

In terms of single-asset companies, how do you get comfortable that you're not streaming political risk in those situations? And then in terms of parental guarantee, as those companies get acquired, how does that guarantee?

Yes, it's an interesting question because you can't -- I mean, with a single-asset company, it's only as good as that asset. And so it means that we need a higher rate of return, so it gets measured into the risk in terms of taking on that risk. It means we need a higher rate of return to reflect us taking on that risk. You can't avoid -- you can't totally avoid all political risk in an industry where the resources are locked in a country and you can't pick them up and move them. And so you're always going to have a bit -- a measure of exposure. You come up with ways to try and creatively protect yourselves. You'll have completion tests. You'll have completion guarantees in place. I remember -- and I think it's long enough that I can go and I can talk about it now. We had extensive discussions with Rio Tinto about Oyu Tolgoi in Mongolia and the difference in value between doing a stream with Turquoise Hill versus doing and providing the parent guarantee versus Rio Tinto providing a parent guarantee. And there was a very big difference in the cost of capital that would fit into that, right? And so we have to capture that risk. And so a single-asset company will have a higher cost. It will, in the end, deliver us a higher rate of return and you try and structure it through having that. You also have to go in there and make an assessment of it. But there's no way around it when it's a single-asset company. Again, I think, again, one of the most important things is to focus on assets that are first or second quartile, so that they can withstand cost creep from royalties and taxation and such like that and still be profitable for that single-asset company and support them that way.

Sorry, I was just going to talk about your second part of your question, which was what do we do on a change of control if the company gets taken over. We have a provision that requires that the parent company of the AcquisitionCo does provide a replacement guarantee at the top-level company. So for instance, when B2Gold took over Sabina, we now have a B2Gold parent company guarantee that steps in. As I mentioned earlier, we've learned over the years, so that is a newer provision that we've added to our agreements over the last several years. Our original deals don't have that kind of a provision, but we do now incorporate that going forward.

And if you look at our entire portfolio right now, you'll see it's a fairly low-risk portfolio. Certain jurisdictions will become a little hotter in some areas year-over-year. But we're -- I think our portfolio could probably handle a little bit more higher-risk jurisdictions, but it has to be the right asset. It has to be for a high-quality asset that has the ability to significantly contribute to our overall portfolio.

Yes. And then I would finish off by highlighting that we don't have any connective tissue to the jurisdiction that the mine operates in. So -- and you have to remember that these mines that we're investing into are low-cost mines. So they can bear a whole bunch of what I would refer to as like creeping expropriation, increased royalties, increased taxes, before we'd ever be impacted.

One more question.

On still keeping with corporate development. With gold outperforming copper, the degree to which it is, are you seeing more precious metals streaming off base metals assets, right, in that sort of opportunity portfolio? And how long does it take for a market dynamic like that to start to come into the corporate development department, right? Is it a few months before you start to see these machinations in the market come into sort of the discussions? And then lastly, what are valuations looking like on those precious metals being streamed off base metals assets? Because running a $2,000 gold price versus a $3,000 gold price, you're going to get big differences, obviously.

So to answer your first question, yes, we're seeing a lot of opportunities coming from polymetallic assets where people are trying to crystallize that precious metals value. Are we actually starting to pay up for that? Are we using spot pricing? Not a chance, right? We're still -- we're -- I think if you look at it, we look at various commodity price assumptions. But I think if you look at consensus and we're probably somewhere around consensus, but we do take into account where is spot price. Right now, consensus is probably $1,800, $1,900 long-term commodity price, but we're sitting at [ $26 ] plus. So we do take that into account in our overall analysis and we are looking at it. When we get judged, we get judged in the market at the time that the transaction is completed. So we'll look at that, but we'll also look at it based on consensus pricing, and we're probably somewhere in the middle most of the time.

I would say the one thing with copper prices not performing as well as what most people -- we're not seeing as much commitments on the construction side for people needing capital in that space, and that's the one weakness. There's lots of people exploring financing, but nobody is pulling the pin in terms of actually going forward on these projects. They just want to see a bit more strength in base metal prices before they do that plunge, and so you just provide that support and be ready. And when it happens, it will happen.

And a lot of the time, the opportunities we're looking at are development-stage opportunities. So you're competing with debt, you're competing with equity. Equity is not readily available these days. Debt is expensive. So streaming is by far the most competitive cost of capital right now in the industry.

So I think we're going to cut it off. I mean, we've got a lunch after this. I've got a couple of closing remarks to make, but I think we'll cut off the Q&A there. And then -- but please, we're going to all be around for the lunch. So if there's any additional questions, we'd love to push that forward. I always love how we run out of time in these things. It's good engaging conversation and stuff like that. So I do have a couple of slides that I think -- oh, I've got to do the clicker. I'm just used to someone else dealing with that. And so the one aspect that I thought, after looking at everything, I just wanted to spend a moment on capital allocation because it is -- obviously, we are generating a lot of cash flow. I consider any year where we make more commitments than we have cash flow coming in as being a positive year, a good year where we continue to grow the company and push forward. Keep on mind that those commitments will come with a construction schedule fed over that construction period, and so it adds to that. But we are focused on accretive growth. And we had some discussion earlier on about this concept of NPO. I think it was Gary that was talking about it. NPO is a real important factor for us. And one of the things that we always look at is the cost per NPO, what are we actually paying on a per ounce basis to make sure that we stay accretive and stay delivering real value back compared to what our shareholders believe the gold is worth in our existing portfolio. And so we put a lot of effort into that and focus on that. And so our #1 priority from a capital allocation perspective is to continue to manage the existing portfolio and look for accretive opportunities to expand and grow that. In times past, we've sold off or collapsed a couple of streams for good returns mainly because we're focused on trying to keep a high-quality portfolio for our shareholders, for our stakeholders. If we can't find those opportunities -- and let's never forget, we sound like a very deal-driven company. We have to make sure that we recognize that we work in a cyclical industry, with commodities that are cyclical. And there are times to invest into the space, and there are times not to. And so we -- I've had people, so how many deals are you going to do this year? I never want to put the pressure on the number of deals that we're going to do this year because there will be 3-, 4-, 5-year periods that we will, as I call, harvest, where we will build up the war chest because prices will be there. It will be frothy. There will be a strong market. Prices are high. That's not the time to be investing into the space because there's no doubt, the spot price has an impact on what we're paying today for ounces in the future. And so we need to be sensitive to that. We make sure we have systems in place that temper us in those frothy periods. And it's a challenge to pick those off. I mean if it was an easy thing, everyone would do it, right? But -- and so we need to be cognizant of that. But the beauty about that is that that's when we build up the war chest to sort of go off and fix balance sheets afterwards. But if we don't, we have made a commitment on the dividend side to return more and more back to our shareholders. We are already, by far, the leading company in the entire precious metals space in terms of the share of our revenue, the share -- the value per ounce that we actually give back to our shareholders in the dividend. And that will grow. Earlier this year, we committed to a progressive dividend, which means that every year, you will see a bit of growth. And this little graph that we've got here on the side, I think what the commitment that we made was that straight up part at the bottom, there will always be a bit of dividend growth on an annual basis. However, the higher our net cash balance, the more that dividend growth will be. And so you can always sort of look at us and say, how much cash on hand do they have at the end of the Q3 when we release our results in November. That's going to be a -- and then watch for the activity level and see what else we commit to over the fourth quarter and into the early part of the next year. You'll get a sense of where the dividend growth is going to fall based on that. And that's kind of the commitment that we've made is that we are going to stay as leaders in that space in terms of returning back to our shareholders. And so I think it's a real important aspect of that. Focus on accretive acquisitions. They're not always going to be there. These acquisitions will be there all the time. The accretive is the challenge. And the one thing that we talked about is how we pick the right mines. The real story is how we avoid the wrong mines, right? That's the trick in this business. It's not so much picking off the right mines. It's avoiding the ones that will have challenges. And I think we've got a very good track record, thanks to -- not these guys, thanks to the entire team. It really is a team thing. I love our project meetings where 2/3 of the company sits down and hammers it out and talks it out in terms of whether we should go forward and what should we do. So like Gary's phrase, this is the last slide, the mic drop slide, you said. Yes, we created this business model 20 years ago. What an incredible 20 years it's been. We spent the first 10 years focused on silver and then expanded into the broader precious metals and definitely now dominantly a gold company. Still have incredible silver optionality. When you add in Pascua-Lama and Navidad and other stuff, great silver optionality, but really good strong growth. And when we look at the corp dev portfolio, lots of stuff in the gold space. And so my prediction is we will stay dominant in gold, probably climb a bit over time, but we do have some good silver exposure that could come forward, too. So I think the rest of these just kind of highlight just the strength of what we have as a team and what we've been able to deliver. And so I think with that, I will say thank you again very much. A special call out to Emma, to Billy, to JC, to there, and the team that works with them in terms of organizing this. Thank you so much for everything you've done. It just always goes so seamlessly. They do such a good job on that side, so a special thanks to you guys. And I think there's a lunch scheduled now, right? So I believe it's out the hallway down and 2 right turns, and you'll be in there and in this beautiful balmy -- it's not too balmy out there, but I think we've got a tent outside. So thank you for joining us.