Wheaton Precious Metals Corp.

And I expect that they will be able to redeploy that capital in streams as opposed to royalty to the benefit of shareholders.

Okay, let's get on to Wheaton Precious Metals.

the second highest quality precious metals company in the world.

Wheaton enjoys fantastic margins.

So the banks, particularly, again, private equity companies.

And of course, we've spoken with Wheaton Precious Metals.

Wheaton hold the only royalty that exists on Black Pine.

That's a half a percent royalty.

Look, I think it's a really nice position to be in, you know, like a junior miner, if you like, developer sort of now going into construction to be fully funded.

And really the catalyst for the funding stack was the precious metal purchase agreement that we signed with Wheaton Precious Metals out of Canada.

That was earlier in the year.

And that was a $300 million deal, which really is about, we we pay that back through gold and silver production as we develop the mine and get into production that really put kgl on the map it was a great sort of tick of approval and confidence from wheaton they're a very large company they understand mining they understand geology so it's really sort of an important milestone for kgl and i will say for wheaton as well it's a true partnership it was their first streaming uh arrangement in in australia Off the back of that, we then updated our models, and that's our baseline economic model, which we released in April.

So there is a half a percent royalty on the property.

that is owned by Wheaton Precious Metals.

We have a 50% buyback right on that royalty for $3.6 million.

In the cash flows that we've shown in the feasibility model, we assume that we exercise that right.

But within gold, I love the royalty companies.

So Royal Gold is one, Franco Nevada, Wheaton Precious Metals.

And if you look at the royalty companies as a whole.

Royalty companies means?

They would do that today because we are in a rapid growth phase part of a company, a royalty company.

This is not dissimilar from exactly what Silver Wheaton did when they started creating value for silver out of a gold mine in Mexico 21, 22 years ago.

The reason why that happened is because the royalty company, in their hands, that silver is worth multiples of what it's worth inside of the producer's hands.

Specifically, the producer trades at one, two times sales.

as a result of the increase in the price of oil.

And so do you think the biggest and the best of the gold producers are still undervalued at these levels, the Agnico Eagles, the Barricks, Newmonts, your royalty streamers like Franco and Wheaton Precious Metals? Would you be going a little further out on the risk chain to the smaller producers and the developers? Would love to get your thoughts there.

Yeah, I think the whole sector is undervalued, but I think that the smaller ones represent the best relative value.

One, because they didn't participate as much as the bigger companies in the rise over the past couple of years.

That shows you that, that generalists are, you know, smart money maybe is, smart money generalists are starting to come in a little bit.

And Wheat and Precious Metals, same thing.

That's a big, you know, huge, well-followed, uh, streamer.

Um, and also, uh, like I said, y- you, if you, if you ta- b- but if you take a look at GDX and GDXJ, I would prefer to, to look at the inverse head and shoulders bottom that they're possibly making since, uh, March.