Wheaton Precious Metals Corp. WPM reported adjusted earnings per share of 33 cents in second-quarter 2024, which surpassed the Zacks Consensus Estimate of 29 cents. The bottom line improved 4.8% year over year. 

Wheaton generated revenues of around $299 million, which improved 12.9% on a year-over-year basis. The upside was caused by an 18% increase in average realized price, which was partially negated by a 4% decline in gold equivalent ounces (GEOs) sold. The top line beat the Zacks Consensus Estimate of $292 million.

Wheaton Precious Metals Corp. Price, Consensus and EPS Surprise

Wheaton Precious Metals Corp. price-consensus-eps-surprise-chart | Wheaton Precious Metals Corp. Quote

Wheaton’s gold production was 84,993 ounces, up from the prior-year quarter’s 83,180 ounces. Attributable silver production increased 14% year over year to 5,062 ounces and palladium production increased 11.8% to 4,338 ounces. The company produced 147,059 GEOs in the June-end quarter, up 7.2% from the prior-year quarter’s 137,176 GEOs.

Wheaton sold 124,009 GEOs, down 4.4% from the last year’s quarter.

Prices

In the second quarter, the average realized gold price was $2,356 per ounce. The figure was 18.6% higher than the year-ago quarter. Silver prices were $29.11 per ounce, up 20.6% year over year. Palladium prices were $979 per ounce compared with $1,438 per ounce in the prior-year quarter. Cobalt prices improved 21.1% year over year to $16.02 per pound.

Financial Position

The company had around $540 million of cash in hand at the end of the second quarter of 2024 compared with $547 million at the end of 2023. It reported an operating cash flow of $234 million compared with $202 million in the prior-year quarter. The company has a $2 billion undrawn revolving credit facility.  The maturity date has been extended to Jun 25, 2029.

2024 Guidance

Wheaton projects attributable production to be between 550,000 GEOs and 620,000 GEOs. Notably, it produced 584,389 GEOs in 2023. Gold production is expected to be in the range of 325,000-370,000 ounces, indicating a slight decline from the 374,585 produced in 2023. Silver production is projected between 18.5 million and 20.5 million ounces, indicating growth from 17.2 million ounces in the prior year. The production of other metals is anticipated to be in the range of 12,000-15,000 GEOs. WPM produced 12,275 GEOs of other metals in 2023.

Price Performance

Shares of Wheaton have gained 24.5% in the past year against the industry’s 4% decline.

Image Source: Zacks Investment Research

Zacks Rank

Wheaton currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.