It’s not just the gold producers that are achieving record revenue in this earnings cycle, royalty names are too. Wheaton Precious Metals (TSX: WPM) on Thursday evening released their third quarter financial results, headlined by topline revenue of $476.3 million, versus $308.3 million in the year ago period, a 54.5% improvement year over year.
That improvement follows a 12.5% improvement in gold equivalent ounces sold over the course of the quarter, which rose from 122,242 ounces to 137,563 ounces. Sales here were dominated by precious metals, with 58% of revenue attributed to gold, alongside 39% to silver and 1% to palladium.
The performance flowed through to the bottom line, with Wheaton posting record net earnings of $367.2 million, or $0.81 per share, versus $154.6 million, or $0.34 per share in the year ago period. On an adjusted basis, net earnings grew from $152.8 million, or $0.34 per share, to $281.1 million, or $0.62 per share.
Sponsored · First Phosphate Corp.
Operating cash flow meanwhile improved by 51% year over year, moving from $254.3 million to $383.0 million, or from $0.56 per share to $0.84 per share.
The company ended the quarter with a cash balance of $1.2 billion, alongside no debt with Wheaton having an undrawn $2.0 billion revolving credit facility available for use in addition to a $500 million accordion.
The results led to a quarterly dividend of $0.165 being declared for the third quarter.
Operationally, production grew 21.5% on a year over year basis, with gold equivalent ounces produced increasing from 142,716 ounces to 173,415 ounces. Growth was attributed to Antamina, which saw production grow 86% year over year, along with Salobo, which grew production 7% and Penasquito, which grew production 17% year over year.
Average cash costs in the quarter amounted to $532 per gold equivalent ounce, versus $439 in Q3 2024. Cash operating margins grew 41%, coming in at $2,930 per gold equivalent ounce.
Current guidance calls for 2025 production of 600,000 to 700,000 gold equivalent ounces, a figure which is expected to grow to 870,000 ounces by 2029.
“We advanced our near-term growth strategy through key milestones including the ramp up of production at Blackwater and Goose, alongside continued construction across six development projects scheduled to come online over the next 24 months. These strong results position us well to meet our annual production guidance of 600,000 to 670,000 gold equivalent ounces and underscores the streaming model’s ability to generate predictable levered cash flows in a rising precious metals price environment,” commented Randy Smallwood, CEO of Wheaton.
Wheaton Precious Metals last traded at $135.99 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
