Good morning, ladies and gentlemen and thank you for standing by. Welcome to Wheaton Precious Metals’ 2018 Second Quarter Results 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] I would like to remind everyone that this conference call is being recorded on Wednesday, August 15th at 11 o’ clock AM Eastern Time. I will now turn the conference over to Mr. Patrick Drouin, Senior Vice President of Investor Relations. Please go ahead.

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; and Haytham Hodaly, Senior Vice President, Corporate Development. I’d like to bring to your attention that some of the commentary in today’s call may contain forward-looking statements. There can be no assurances that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. In addition to our financial results’ cautionary note regarding forward-looking statements, please refer to the section entitled Description of the Business Risk Factors in Wheaton’s annual information form and the risks identified under Risks and Uncertainties in Management’s Discussion and Analysis, both available on SEDAR and in Wheaton’s Form 40-F and Wheaton’s Form 6-K, both on file with the U.S. Securities and Exchange Commission. The Annual Information Form Q2 2018 Management’s Discussion and Analysis and the press release from last night set out the material assumptions and risks that could cause the actual results to differ, including among others, fluctuations in the price of the commodities, the outcome of the challenge by the CRA of Wheaton’s tax filings, the absence of control over mining operations from which Wheaton purchases precious metals, completing new streaming transactions and risks related to such mining operations and the continued operations of Wheaton’s counterparties. It should be noted that all figures referred to on today’s call are in U.S. dollars unless otherwise noted. In addition, reference to Wheaton or Wheaton Precious Metals on this call include Wheaton Precious Metals Corp and or its wholly owned subsidiaries as applicable. Now, I’d like to turn the call over to Randy Smallwood, our President and Chief Executive Officer.

Thank you, Patrick, and good morning, ladies and gentlemen. Thank you for dialing in to our conference call to discuss the second quarter results of 2018. I am pleased to announce that we delivered yet another solid quarter with strong financial results from our portfolio of high quality assets. And since the beginning of the year, Wheaton has been very active on the corporate development front. With the restructuring of the San Dimas stream and the acquisition of two new streams on Vale’s Voisey's Bay and Sibanye’s Stillwater and East Boulder mines. Stillwater has already begun to contribute to production and cash flow here in the third quarter of 2018 and we expect Voisey’s Bay to start in January of 2021. With the addition of the new streams, Wheaton has reconfirmed its production guidance which I will discuss later in the call. Gary Brown, one of our Senior Vice Presidents and our Chief Financial Officer will now provide more details on our results. Gary?

Thank you, Randy and good morning, ladies and gentleman. Prior to reviewing Wheaton’s unaudited financial results for the three months ended June 30th 2018, I would like to remind everyone that all monetary figures discussed are denominated in US dollars unless otherwise noted. The company's precious metal interest produced 6.1 million ounces of silver and 85,300 ounces of gold in the second quarter of 2018. Relative to the second quarter of the prior year, this represented a decrease of 15% in silver production and an increase of 7% in gold production, with this change being primarily due to the termination in the San Dimas silver stream, effective May 10, 2018 and concurrently entering into a new San Dimas gold stream with silver production being further impacted by the expiry of the streaming agreements relative to the Lagunas Norte, Veladero and Pierina mines on March 31st 2018 combined with the expected lower production at Antamina primarily due to lower silver grades resulting from mine sequencing in the open pit. Sales volumes amounted to 6 million ounces of silver and 87,100 ounces of gold in the second quarter of 2018, representing a decrease of 6% for silver and an increase of 21% for gold, relative to the second quarter of 2017. The decrease in the silver sales volumes was attributable to the decrease production, largely offset by relative changes to payable silver produced, but not yet delivered to Wheaton. The increase in gold sales volumes was attributable to a combination of increased production and positive changes in the balance of payable gold produced, but not yet delivered to Wheaton. As at June 30th, 2018 approximately 4.3 million payable silver ounces and 75,600 payable gold ounces had been produced, but not yet delivered to the company, representing a decrease during the quarter of…

Thank you, Gary. As mentioned, Wheaton has been very active on the corporate development front since the beginning of 2018. During the second quarter of 2018, we closed the new precious metal streaming agreement with First Majestic Silver on the San Dimas mine, which is the asset that Wheaton was first founded on back in 2004. The terms of the new streaming agreement entitled Wheaton to 25% of gold production plus an additional amount of gold equal to 25% of silver production converted to gold at a fixed gold to silver exchange ratio of 70:1. Also in the second quarter of 2018, Wheaton entered into an agreement to acquire from Vale 42.4% of the Voisey’s Bay Cobalt production until the delivery of 31 million pounds of cobalt and thereafter 21.2% for an upfront payment of $390 million. Delivery of Cobalt production will commence in January of 2021. And finally subsequent to the quarter end, Wheaton entered into an agreement to acquire from Sibanye Stillwater, a fixed percentage of gold and palladium production from the Stillwater and East Boulder mines, starting on July 1st of 2018 for an upfront payment of 500 million. Given our sector leading cash flow and revolving credit facility, Wheaton was able to complete these transactions without having to access additional sources of capital. We believe that both new acquisitions are accretive on all metrics and fit very well within our existing portfolio of low cost, long life assets. Wheaton now not only has a solid growth profile, but also the most diversified production base that it has ever had. And with regard to production, we have reconfirmed our guidance which reflects the changes to the San Dimas streaming agreement and the addition of the new asset. Wheaton’s estimated attributable production for -- in 2019 is forecast…

[Operator Instructions] Your first question today comes from the line of Anita Soni of Credit Suisse. Please go ahead.

My apologies if you've addressed this in the comments. I jumped on a little bit late, but I'm just trying to clarify the tax situation. So in terms of the domestic case that the CRA has against you at this point, I think you’d mentioned that there would be no material impact to the taxes payable in 2014, ’15, ’16, ‘17 potentially if they bring up a similar suite, but when you look at the table that you have, identifying taxes payable, there's a difference from Q1 to Q2 and I was just wondering where that difference is arriving from? I think it was like 903 million this quarter and prior quarter, saying 725 million.

So just to clarify, the CRA has reassessed us domestically, relative to the way that we deduct the upfront payment relative to streams that have been entered into since 2008, which we have taken the position and we still very strongly believe in this position that we're not taxable until the upfront deposit has been reduced to zero. The CRA has taken the position that we should be taxable or including in taxable income, income based on the accounting basis, which differs from our tax filing position in that, we deplete the upfront payment over the number of expected ounces that we received. That reassessment domestically has very, very little impact. It does affect the timing of loss carrybacks, but the net result is immaterial. We have updated the table for our international dispute that we've got ongoing with the CRA to reflect the potential obligation on the basis of this new position that the CRA has taken and that's where you'll see the difference from Q1 to Q2 and we've foot noted what the numbers would be if under the old basis.

So that’s basically taking a read through of what they're looking at domestically if they were then to take that internationally the impact that would have?

That’s correct. But again, we feel very strongly that we -- our position will be upheld here. We’re in the process of objecting to the 2013 reassessment.

[Operator Instructions] Your next question comes from the line of Michael Gray of Macquarie. Please go ahead.

One question just related to how active you’ve been on corporate development, I believe on previous conference calls, you’ve indicated the search for new streams, you’re willing to go a little bit further afield including Africa. Can you provide some color on your appetite for such diversification and how active you might be on that front?

As you can see, obviously, by our recently announced transactions, we've been quite successful on capitalizing some of our larger opportunism in the first half of the year. Your question was in regards to, whether we’d look to add. What we're looking for is high quality assets. So jurisdictionally, we will have to consider each one. Obviously, we’ll have to await the pros and cons of the country we enter into. What we're now seeing is a number of opportunities in the pipeline that fall between, call it, $100 million and $300 million in value. These are primarily development stage financing opportunities that would require very little upfront capital as any spending would actually be staged through a development timeline, which is typically 12 to 36 months. So there are opportunities that we are looking at. In Africa, I would say there's always been some opportunities. We have not found historically opportunities that we feel are worth jumping into at the level that's required, but we will continue to look in those jurisdictions.

Michael, if I just add, it does relate, I mean, Africa as a whole of course is the continent that the most important thing is the actual countries that we invest in. There are a few countries in Africa that we do feel are investable, but as I would say, it's a few. There is more of -- so we will be very selective from that front and focus on -- comes down to which country we're talking about. There are definitely some attractive jurisdictions in Africa.

Your next question comes from the line of Charles Gibson of Edison. Your line is open.

And congratulations if I may on a very solid quarter. I have two questions if I could. Not at all, thank you. Two questions if I could. One is, I just wanted to know in relation to the CRA, are you still in dialog with them, are you still in the case discovery process or have you basically broken up communications and the situation is, we’ll see you in court.

Yeah. It's no longer, the CRA, when we petition the case in the tax court, the case gets handed off to the Ministry of Justice. So, there are hearings scheduled for the fall here that to determine whether we are through the discovery process or not. We believe that we are, although there is potential that the Ministry of Justice seeks additional time for discovery. So we will hopefully have a better understanding as to whether the discovery process is concluded. We still believe that we’ll hold regardless of whether the discovery process is – it needs to continue that will still be holding that September 2019 court date. So the interaction with the Ministry of Justice really is limited to the discovery interactions.

And if I could, a rather different question. My second question, I just wanted to ask about the depletion charge on the gold stream at San Dimas. I mean, even accounting for the fact the 70 for 1 gold to silver ratio, if you compare the depletion on the silver stream compared to the depletion of the gold stream, the gold stream, it seems to be relatively larger and I was just wondering if we should be entering into that.

Charles, that just really reflects that we disposed of the old silver stream and when we entered into the new gold stream, we made an upfront payment of $220 million, which was more reflective of the current market value of gold. So as a result, the depletion rate has increased there.

I think the way to look at it is, it’s essentially a new stream that was placed in the context of today's market.

Thank you, Charles and thank you everyone for dialing in today. I want to reiterate what a strong start that we have had here for the first half of 2018. Firstly, we successfully restructured that San Dimas stream and now have a new partner with a strong long term vision that is focused on deploying capital back into San Dimas. Secondly, we completed two new streaming transactions or acquisitions that will both add immediate and future production and cash flow with Stillwater already contributing to the third quarter of 2018. Thirdly, our existing portfolio of high quality assets generated over 260 million in cash flows in the first half of 2018 and with this solid foundation in place, a strong growth profile going forward and optionality measured in ounces, not acres, we believe we are very well positioned to continue to deliver value back to our shareholders. So we look forward to speaking with you again soon and thank you.

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