What factors could drive WPM's EPS growth in 2025?

**Wheaton Precious Metals' (WPM) EPS growth in 2025 is poised for a positive trajectory**, driven by a combination of strategic initiatives and favorable market conditions. Here are the key factors contributing to this growth: 1. **Production Growth from New Projects**: WPM is set to benefit from the commencement of production at its development assets, including the Goose Project, Blackwater Project, Mineral Park, and Platreef Project. These projects are expected to contribute an additional 20-25 thousand gold equivalent ounces (GEOs) to the company's output. This increase in production will directly impact revenue and, consequently, EPS. 2. **Mergers and Acquisitions**: The company's focus on merger and acquisition (M&A) opportunities within the precious metals sector presents a significant growth opportunity. Successful M&A deals can lead to immediate and long-term EPS growth by expanding the company's asset base and increasing its market share. 3. **Revenue Growth**: WPM's revenue has already shown a 26% increase in 2024, reaching approximately $1.28 billion. This growth is attributed to stronger-than-expected production at Salobo and Constancia, as well as higher gold grades and recoveries. Looking ahead, the company's production guidance for 2025 is between 600,000 and 670,000 GEOs, indicating a continued upward trend in revenue and, by extension, EPS. 4. **Price Realizations**: Gold prices have been trading at near all-time highs, driven by factors such as cooling inflation, expectations of interest rate cuts, and geopolitical uncertainties. As WPM is sensitive to gold prices due to its streaming and royalty model, this favorable market condition is likely to boost its revenue and EPS. 5. **Dividend Growth**: WPM has a history of increasing dividends, with a 6.5% uplift in the fourth quarter’s dividend to $0.165 per share. This not only reflects the company's financial strength but also indicates a commitment to returning value to shareholders, which can positively influence EPS growth as it affects the company's valuation. 6. **Analyst Confidence**: The consensus rating for WPM is "Neutral" with an average analyst price target of $82.33, indicating a moderate optimism among analysts regarding the company's future performance. Scotiabank's recent price target increase to $79.00 further supports this positive outlook. 7. **Financial Health**: WPM maintains a strong balance sheet with no debt and a substantial cash reserve, positioning it well for future growth and value creation. This financial stability is a key factor in the company's ability to execute its growth strategies and sustain EPS growth. In summary, WPM's EPS growth in 2025 is expected to be driven by a combination of operational efficiencies, favorable market conditions, and strategic initiatives. The company's focus on production growth, M&A opportunities, and dividend policy, along with a positive analyst outlook, supports a favorable EPS growth trajectory.