Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Silver Wheaton’s 2016 First Quarter Results Conference Call. [Operator Instructions] I would like to remind everyone that this conference call is being recorded on Monday, May 9 at 11:00 a.m. 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 am joined today by Randy Smallwood, Silver Wheaton’s President and Chief Executive Officer; Gary Brown, Senior Vice President and Chief Financial Officer; and Haytham Hodaly, Senior Vice President, Corporate Development. I would like to bring to your attention that some of the commentary on today’s call may contain forward-looking statements. There can be no assurances that forward-looking statements will prove to be accurate as the 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 Silver 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 Silver Wheaton’s Form 40-F and Silver Wheaton’s Form-6K, both on file with the U.S. Securities and Exchange Commission. The annual information form and press release from this morning set out the material assumptions and risk factors that could cause actual results to differ, including among others fluctuation in the price of commodities, differences in the interpretation or application of tax laws and regulations from those taken by Silver Wheaton, the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to such mining operations. Lastly, it should be noted that all figures referred to on today’s call are in U.S. dollars unless otherwise noted. Now, I would 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 into our conference call to discuss our first quarter 2016 results. I am happy to announce that we had a solid start to the year as Silver Wheaton achieved its second best quarter ever for production and sales volumes. During the quarter, we produced 12.7 million silver equivalent ounces and realized sales volumes of 12.8 million silver equivalent ounces. In regards to production, we had strong performances from the Salobo and Antamina mines, which were offset by a shortfall from the San Dimas mine. The shortfall relates to Primero’s efforts to enhance safety at the San Dimas mine, an initiative that we fully support. It is the right thing to do. Subsequent to the quarter end, we completed an equity financing and raised over $600 million, which gives us the capacity to pursue additional accretive acquisitions in what we believe is a very favorable environment. For the first quarter of 2016, quarterly production increased 24% from the previous year and sales volumes increased 65%. Weak commodity prices once again affected our average realized sales price per silver equivalent ounces, which was 13% lower. Despite this, Silver Wheaton’s revenues increased 44% and operating cash flows increased 28% compared with the Q1 of 2015. Lower commodity prices did impact our net earnings. However, we once again maintained a healthy cash operating margin of 70%, resulting in operating cash flows of $114 million during the quarter, an increase of 28% from Q1 in 2015. Gary will provide a bit more information shortly. Speaking of cash flows, our quarterly dividends continue to deliver 20% of the average cash generated by operating activities in the previous four quarters. Despite the volatility of this commodity market, our dividend policy continues to prove its…

Thank you, Randy and good morning ladies and gentlemen. Prior to reviewing Silver Wheaton’s unaudited financial results for the three months ended March 31, 2016, I would like to remind everyone that all monetary figures discussed are denominated in U.S. dollars unless otherwise noted. In addition, all prior year comparisons that are referenced are to the first quarter of 2015 unless otherwise noted. The company’s precious metal interest generated silver equivalent production of 12.7 million ounces in the first quarter of 2016, 24% higher than the prior year due primarily to the recently acquired Anatamina stream combined with higher production from the Salobo mine partially offset by lower production from San Dimas. Approximately 59% of this production related to silver with the remainder relating to gold. Silver equivalent sales volumes amounted to 12.8 million ounces in Q1, 2016 representing a 65% increase from Q1 2015 due to a combination of higher production and changes in silver equivalent ounces produced, but not yet delivered. As of March 31, 2016, payable silver equivalent ounces produced, but not yet delivered, amounted to approximately 6.1 million ounces, a decrease of approximately 0.9 million ounces during the quarter. It is important to understand that we estimate a normal level for ounces produced, but not delivered to equate to approximately 2 months worth of payable production. As a result, our expectation is that this balance will grow over the remainder of 2016, with production being more heavily weighted towards the latter half of the year. Revenue for the first quarter of 2016 amounted to $188 million, representing a 44% increase from 2015 with the increase in sales volumes being partially offset by a 13% decrease in the average realized silver equivalent selling price. Gross margin for the first quarter of 2016, amounted to $60 million, representing…

Thanks very much, Gary. Operator, we would like to turn the call over for questions, please.

Thank you. Ladies and gentlemen, we will now conduction a question-and-answer session. [Operator Instructions] Your first question comes from the line of John [indiscernible] from Canaccord Genuity. Your line is open.

Hi, good morning gentlemen. Congratulations on a good start to the year. I have got three, hopefully pretty quick questions. Depreciation expense for 2016, what do you see, guys, for the year?

Yes. John, I think your best estimate is to look at what we had as depletion rate for the first quarter. And so that was an average of $5.59 per silver equivalent ounce.

Okay, that’s perfect. Antamina, I notice the sales are still lagging production and there hasn’t been a catch up yet, do you expect the catch up as the year progresses?

Yes. I mean it’s a matter of just getting things into flow there. So we do get 100% of production, so it just got to work its way through the system.

Do you – I mean, do you have a sense of timing, would you expect that closer to the later half of the year or…?

No. I think we should see it actually here in the second quarter.

Second quarter, okay, perfect. And then third question Yauliyacu, I noticed the cost ticked up from where you were running at the end of the year, is that due to the revised agreement that you signed in November?

Yes. I mean we converted that from a term transaction that was supposed to end in 2025 to a life of mine transaction. And so some of that cost, without putting any capital up, the way we adjusted the contract was to have a slightly higher production payment and a bit of silver sharing there too, at certain levels. So this is a mine that’s been running for well over 200 years continuously and we were pretty excited about being able to convert it to a life of mine agreement.

Yes, absolutely. I totally understand that. So should we be looking at this level basically roughly going forward plus the inflation?

There is – as they outperform, there are some variables in the production payment and so we will move around a bit. But I would say it’s probably not too far up from where we are right now.

Okay, perfect. That answers my question. Thanks a lot guys.

Thank you, John.

[Operator Instructions] Your next question comes from the line of Alex Watt from Scotia. Your line is open.

Yes. Thanks guys. Just one quick housekeeping question on the interest expense, with this quarter being 100% expense, which seems a little bit different than years past, is that going to be the case going forward or how do you decide whether to capitalize versus expense?

Yes. At this point, we wouldn’t expect to be capitalizing any of the interest to any of the properties under development. So I think if you are looking to model interest expense from an income statement perspective, we would expect to expense 100% of it.

Okay, great. Thank you.

Thanks Alex.

Your next question comes in the line of Dan Rollins from RBC Capital Markets. Your line is open.

Yes. Thanks very much. Randy, I was wondering if you could provide a little bit of color on the pipeline, I know you have mentioned in the past there are some pretty big chunky deals that they aren’t producing assets, there is also some of that $200 million to $400 million range on smaller producing assets, but more importantly with respect sort of the earlier stage projects, with the recent improvement in metal prices, have you seen the level of interest from those smaller opportunities such as like Panoro, have they started to decline or are they still pretty active and people approaching it for capital?

Well Dan, I mean the change in prices that we have seen has been pretty well focused. The recent strength has been focused on the precious metals side and we haven’t seen as much strength in the base metals side. And so assets like Cotabambas in Panoro of course mainly a copper asset are still having a tough go of it. That being said, we do get a bit of a spillover effect. There is definitely a bit of a stronger market out there. And so I do see some of these companies perhaps setting their options out there. But that type of a structure, that Panoro deal is one that we are very excited about, because we think it’s an excellent avenue to have good long-term optionality in terms of being able to deliver opportunities when that market wakes up again. There is no doubt that we need copper assets like that eventually. The one thing I would say about the asset mix that we are seeing on the corporate development front right now is that it’s a bit scary. The lack of development projects, namely what we are looking at is operating assets. And I can tell you that this industry always needs development and redevelopment in terms of continuing to supply the resources that the world what needs. And so that does bode well for us as an industry. But it underscores 2 years or 3 years ago, I would say half of the stuff we were look at was to help fund new construction. Those are in few and far between right now. And so that’s a lot of what we are looking at. Dan you have mentioned a few of the comments or a few of the assets we are looking at $200 million to $400 million range. But there are a few other chunkier assets out there and so we are pretty excited about what we see coming down the pipe.

Excellent. And then with respect to competition, there has always been, over the last 10 years, you have seen these cycles where people say, hey there is new competitors coming into the space. They view it as sort of an easy business plan to execute on, although a lot of them have not had the success given the technical side of things, have you started to see more competition from beyond your current competitors in the space like private equity or pension funds or is it really just the main players at the table right now?

I mean we started the streaming model 12 years ago. And quite literally, I mean I have always said the ultimate form of compliment is when someone copies you. And we are having a few people out there copying the business model. But we have got the advantage of 12 years of experience, plus I would say a very strong technical team and then the critical mass, the scale, the capacity that we have as a company in terms of going forward, the cash flows that we have that we can put to effort and then in terms of continuing to reinvest and continuing to grow our company. It gives us a real advantage and we don’t plan on giving up that advantage anytime soon. And so I am not surprised. It’s definitely not a simple business to run. There is challenges in this business, but as we continue to put in the effort and I think we continue to fine tune that and perform.

Perfect. And then just maybe one last question I always love to ask you is, with respect to the payout ratio on the dividend, any plans near-term to increase that or is the opportunity set just so large that right now all cash is looking to pursue accretive acquisitions?

Yes. Because the dividend is tied to our cash flows and I would fully expect stronger both with our organic growth and how I think reached over the last few quarters on top of stronger commodity price mix, we do average it over the previous four quarters. I can tell you that it’s bursting at the scenes ready to start growing right now because we have seen both the organic growth and the entire commodity pricing. The 20%, that will come – I tend to look at these opportunities, these times of the cycle as times to reinvest into the space. The bottom of the – or near the bottom of the commodity price cycle is the best time to reinvest into a new asset. But as we see stronger commodity prices, that’s when we will start shipping some of our cash flows back towards perhaps increasing that 20% of cash flow. And that’s when we implemented the dividend in the first place was back during the last sort of peak cycle of the commodity prices and they fully expect that when we see that again, that’s when we will continue to increase that 20%.

Perfect. Thanks very much and best of luck for the remainder of 2016.

Thanks Dan. Thank you everyone for dialing in today. Silver Wheaton is on track for another record year of production and sales here in 2016. We have had a very good start. Our portfolio streams on low cost, high quality assets should deliver over 10% of additional production at no additional costs this year. And we think this is an excellent time to add additional streams to our portfolio. We continued to believe that Silver Wheaton offers the best option for gaining exposure to precious metals by offering a proven track record of accretive acquisitions and tangible organic growth. So thank you again for dialing in today. And we do look forward to speaking with all of you again soon. Thank you.

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