Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals' Annual and Special Meeting of Shareholders conference call. All lines have been placed on mute to prevent any background noise. I would now like to turn the conference call over to Doug Holtby, Chairman of the Board of Directors. Please go ahead, Mr. Holtby.
Thank you very much. Good morning, ladies and gentlemen, and welcome to the Annual and Special Meeting of Shareholders of Wheaton Precious Metals Corp. Welcome to those of you who are joining us through our webcast. My name is Doug Holtby, and I am Chairman of the Board, I will chair this meeting. Before we begin the formal business of the meeting, I would like to introduce certain of your Board of Directors here today, and various members of Wheaton Precious Metals' senior management team present. We have Wheaton Precious Metals Directors, John Brough, Peter Gillin, Eduardo Luna, and Charles Genest.
With me are also Randy Smallwood, our President and Chief Executive Officer, and a Wheaton Precious Metals Director, Gary Brown, Senior Vice President and Chief Financial Officer, Curt Bernardi, Senior Vice President, Legal and Corporate Affairs, Haytham Hodaly, Senior Vice President, Corporate Development, and Patrick Drouin, Senior Vice President, Investor Relations. 2017 marked a new chapter in our corporate history as we transitioned from Silver Wheaton to Wheaton Precious Metals, a new identity that better reflects the underlying silver and gold assets that make up one of the best asset portfolios in the industry. In 2017, this portfolio once again delivered production that exceeded our guidance for both silver and gold. We've generated over $535 million in cash flow, founded on production of over 350,000 ounces of gold and 28 million ounces of silver.
As a result of our sector-leading cash flow, as well as ample access to capital to finance acquisitions, we increased the amount of capital returned to our shareholders with a significant increase of our dividend. We distributed over $145 million back to our shareholders in 2017, we now deliver the highest yield among precious metal streamers. We are proud to be one of the largest and most profitable precious metals companies in the world, we believe Wheaton Precious Metals is the best investment vehicle for precious metal investors worldwide. Let us now proceed with the business of the meeting. For the purposes of this meeting, Wheaton Precious Metals has appointed Leslie MacFarlane and Ben Bott on behalf of AST Trust Company Canada to act as scrutineers. Curt Bernardi, the Senior Vice President, Legal, and Corporate Secretary of the company, will act as Secretary for the meeting.
I've been advised that the notice calling this meeting, together with notice and access notification and the form of proxy, were mailed to shareholders of record as of March 15, 2018, in accordance with applicable law. AST Trust Company Canada has filed with me proof of service of such mailing, and I direct that a copy of such proof of service be annexed to the minutes of this meeting as a schedule. The scrutineers have also advised me that prior to the meeting, proxies were received from the holders of a sufficient number of common shares to constitute a quorum. I therefore declare that the meeting to be regularly called and properly constituted for the transaction of business. I direct that the formal report of the scrutineers be annexed to the minutes of this meeting as a schedule.
I'd like to take a moment to comment on the voting procedures to be used at today's meeting. Voting will proceed by way of show of hands. However, voting for the directors of the company and the company's approach to executive compensation will proceed by way of ballot. If you are a registered shareholder or proxy holder, you should have received a ballot on blue paper and a ballot on yellow paper upon checking in with AST Trust Company Canada. If you are a registered shareholder or proxy holder and do not have a ballot, please raise your hand and a representative on behalf of AST Trust Company Canada will bring you the ballots. Only registered shareholders or duly appointed proxy holders can address the meeting.
As the first item of business of this meeting, I now present to the meeting the company's financial statements as at and for the year ended December 31st, 2017. Copies of the financial statements were mailed to those shareholders who requested them to receive copies in accordance with applicable law. Unless there's any objection, I do not propose to read them to the meeting. The next item of business is the election of directors by the company shareholders to hold office until the close of the first annual meeting of shareholders following such election or until their successors are elected or appointed. The company's bylaws include an advance notice requirement for the nomination of directors by shareholders in certain circumstances. The company did not receive notice of any director nominations in connection with this meeting.
Accordingly, the only persons eligible to be nominated for election to this board at this meeting are the management nominees. Management nominates George Brack, John Brough, Peter Gillin, Chantal Gosselin, Charles Genest, Douglas Holtby, Eduardo Luna, Marilyn Schonberner, and Randy Smallwood as directors for the ensuing year or until their successors are elected or appointed. I declare the nominations closed. As a result of the company's majority voting policy, it is necessary to vote by ballot for the election of each director. I therefore direct that a poll be taken. Each shareholder or proxy nominee should record his or her vote in respect to the election of each director nominee by marking the appropriate box beside each director's name and by signing and printing his or her name on the blue ballot. Once you've done so, please raise your hand and the scrutineers will collect the ballot from you.
I've been advised by the scrutineers that the proxies deposited for the meeting have overwhelmingly voted for the election of each of the directors. Therefore, I declare George Brack, John Brough, Peter Gillin, Chantal Gosselin, Charles Genest, Douglas Holtby, Eduardo Luna, Marilyn Schonberner, and Randy Smallwood to be elected as your board of directors to serve in that capacity until the company's next annual general meeting or until their successors are elected or appointed. Rather than hold up the business of the meeting for the final tabulation of votes cast, I direct that the results of the poll for the election of the directors be included with the minutes of this meeting and filed on SEDAR and EDGAR. The next item of business is the appointment of auditors for the ensuing year and the authorization for the board to fix their remuneration.
I ask that someone move and someone second the following resolution. Resolve that Deloitte LLP, independent registered public accounting firm be, and they are hereby appointed as auditors of the company to hold office until the close of the next annual general meeting of shareholders or until their successors are appointed at such remuneration as may be fixed by the directors and the directors be, and they are hereby authorized to fix such remuneration. Will someone move this resolution?
I so move.
Thank you, John. Will someone second the motion?
I second the motion.
Thank you, Peter. Any discussion? All shareholders and proxy holders in favor of the resolution, please so signify by raising your hand. Contrary if any? I declare the resolution carried. The next item of business is the approval of the company's approach to executive compensation, as more particularly described in the management information circular. The resolution to approve the company's approach to executive compensation is set out on page 81 of the management information circular. In order to be effective, this resolution must be approved by the affirmative vote of not less than a majority of the votes cast at this meeting. I am advised by the scrutineer that just over 5% of the shares already voted by proxy were voted against the resolution to approve the company's approach to executive compensation, as set out on page 84 of the management information circular.
We will proceed by vote by way of ballot. Each shareholder or proxy nominee should record his or her vote in respect to the company's approach to executive compensation by marking the appropriate box and by signing and printing his or her name on the yellow ballot. Once you've completed your ballot, please raise your hand and the scrutineers will collect them from you. I've been advised by the scrutineers that the proxies deposited for the meeting have been overwhelmingly voted for the confirmation of the company's approach to executive compensation. As sufficient votes have been cast in favor of this resolution, I declare the resolution carried. Rather than hold up the business of the meeting for the final tabulation of votes cast, I direct that the results of the poll be included with the minutes of this meeting and filed on SEDAR and EDGAR.
Is there any further business? I ask that someone move and someone second the resolution that this meeting now terminate.
I so move.
Thank you, Chuck. Will someone second the motion?
I second the motion.
Thank you, Eduardo. Any discussion? All shareholders and proxy holders in favor of the resolution, please so signify it by raising your hand. Contrary if any? I declare that the formal portion of the meeting is now terminated. We will now invite shareholders to ask any questions they may have for myself or Randy and management. No questions? Well, thank you all for-
Can you-
Yes.
explain a little more regarding that problem with Revenue Canada?
You want to do that, Randy?
Sure.
Maybe you should come up here, Randy.
Yes. The challenge with Our business is run on streaming metal. We buy gold and silver all around the world. We buy gold and silver in Canada, and we buy gold and silver outside of Canada. The way our business is structured is that we are taxable. We're cash taxable on the gold and silver that we buy in Canada. We don't pay cash taxes in Canada for gold and silver that's mined outside of Canada. CRA has commenced an audit for the years 2005 to 2010, essentially focused on transfer pricing, where essentially they reassessed us for those years.
To sum it up or to simplify it, that they believe that the revenue that we've generated from all the gold and silver that's being mined outside of Canada, the value for the services being provided in Vancouver, in our head office here, to try and bring that revenue into Canada and be taxable here in Canada on that. We are fighting the process. We've immediately launched an appeal upon the reassessment, and then about 91 days later, took it into the tax court system through the tax court system. We're nearly finished the discovery process. The main portion of the interview stage is done. We just don't have a final sign-off from the other side yet.
We just announced in the results yesterday and talked about it a bit further this morning, we do have a trial date set for the commencement of the trial, September 17th, 2019. We are in active discussions with the Crown, with the Department of Justice, and working through this process, and still open to settlement. We are working our way towards defending our position vigorously through the trial process. We're very confident in our position and look forward to charging our way through this thing and getting it behind us.
Are there other companies that are in the same situation?
I can't think of one, actually, because in this case, we're talking about resources that aren't being mined in Canada. I hate to say it, we're actually a bit of a unique. No, but I will say that governments around the world are getting more and more aggressive with respect to tax policy or tax measures, but ours is a very unique situation. We are cash taxable for all of our resources that we mine and produce in Canada.
Whatever they do, like most companies that are Canadian do pay taxes, right?
If they have Canadian assets, they pay taxes. If they have foreign assets, they pay taxes in those jurisdictions. What I can assure you is that.
There is a reason, like in a rather good basis.
Very good. Very sound reason.
For fighting.
Yes. Incredibly confident in this position. No, our business is set up and structured such that we pay the appropriate taxes in every jurisdiction that we work in. The concept of taxes being paid in Canada for gold and silver that's being mined outside of Canada is one we do not agree with, and we believe that the laws of Canada don't allow for that. As long as we file the appropriate tax returns and pay the appropriate taxes in any jurisdiction that we work in. That's the same for every Canadian corporation.
What happens with Canadian corporations that mine elsewhere?
They pay taxes in those jurisdictions.
They don't pay taxes in Canada either?
They shouldn't. If they have operations in Canada, they pay taxes in Canada.
Oh.
If it's not Canadian resources, I don't understand why Canada expects to get tax revenues.
Okay. You have a good base?
We have a very sound basis. We're very confident in our position.
Good question. Any other questions? All right, well, thank you very much, and I guess that concludes this meeting. Thank you very much for calling in.
Ladies and gentlemen, this concludes the conference call for today. Thank you for participating. Please disconnect your lines.
Thank you.