Wheaton Precious Metals (WPM) Q3 2022 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals 2022 Third Quarter Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I would like to remind everyone that this conference call is being recorded on Friday, November 4, 2022 at 11 AM Eastern Time.

I will now turn the conference over to Mr. Patrick Drouin, Senior Vice President of Investor Relations and Sustainability. Please go ahead, sir.

Patrick Drouin

Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined today by Randy Smallwood, Wheaton Precious Metals' President and Chief Executive Officer; Gary Brown, Senior Vice President and Chief Financial Officer; Haytham Hodaly, Senior Vice President, Corporate Development; and Wes Carson, Vice President, Mining Operations.

Please note that for those not currently on the webcast, the slide presentation accompanying this conference call is available in PDF format on the Presentations page of the Wheaton Precious Metal website.

I'd like to bring to your attention that some of the commentary on today's call may contain forward-looking statements and I would direct everyone to review Slide 2 of the presentation, which contains important cautionary notes regarding forward-looking statements. It should be noted that all figures referred to on today's call are in U.S. dollars unless otherwise noted.

Now I'd like to turn the call over to Randy Smallwood, our President and Chief Executive Officer.

Randy Smallwood

Thank you, Patrick, and good morning, everyone. Thank you for joining us today to discuss Wheaton's third quarter results of 2022. I'm pleased to announce that our high-quality portfolio once again delivered solid revenue, earnings and cash flow in the third quarter of 2022, as Gary will discuss later.

While inflationary pressures are still impacting all sectors of the economy, especially mining, Wheaton has maintained cash operating margins of over 75% year-to-date, highlighting the resiliency of the streaming model in an inflationary environment. Furthermore, we have demonstrated our continued willingness to identify strategic opportunities, both externally and within our portfolio, that create value for our shareholders.

To that end, in the quarter, we completed the termination of the Keno Hill stream for $141 million and announced the proposed termination of the Yauliyacu stream with Glencore for $150 million. We are very happy with the returns these mines have brought us over the years. However, we feel they have run their course within our portfolio, and it was the right time for us to part ways and put that capital back to work in growing our portfolio.