Wheaton Precious Metals Delivers a Gold Rush Quarter Amid Rising Metals Prices

Wheaton Precious Metals (NYSE: WPM) has delivered a stellar first quarter of 2025, with revenue and earnings soaring to record highs. The results underscore the company’s ability to capitalize on rising precious metal prices and operational momentum, while navigating new tax headwinds. Here’s what investors need to know.

The Numbers Tell a Story of Explosive Growth

Wheaton’s Q1 2025 revenue jumped to $470 million, a 58.5% surge from the same period last year. This was driven by a 36% rise in the average realized gold equivalent (GEO) price, combined with a 16% increase in GEOs sold. Gold, which accounts for 68% of revenue, benefited from its status as a safe-haven asset in uncertain markets, while silver and platinum group metals also contributed.

Net earnings more than kept pace, reaching $254 million, a 54.8% year-over-year increase. On a per-share basis, earnings rose to $0.56, up 54.7%, while operating cash flow hit $361 million—a 64.5% improvement. The cash operating margin per GEO soared to $2,400, a 45% increase, reflecting Wheaton’s disciplined cost management and the leverage its streaming model provides in a rising commodity environment.

Operational Wins and Challenges

The top-line growth was underpinned by strong performance at key mines. Salobo (a copper-gold mine in Brazil) saw attributable gold ounces rise 16%, while Artemis Gold’s Blackwater Mine—which began commercial production in May 2025—added new volume. However, lower output at Constancia (in Peru) and Peñasquito (Mexico) due to planned pit transitions tempered gains. Wheaton emphasized that these were temporary and part of long-term mine optimization plans.

Navigating the Tax Landscape

One notable drag was a $45 million current tax expense tied to the Global Minimum Tax (GMT), which took effect in 2024. This contrasts sharply with Q1 2024, when no such expense existed. While the tax hit reduced net earnings by approximately $0.10 per share, Wheaton’s robust cash flow and balance sheet—$1.1 billion in cash with no debt—mitigate risks. The company also noted that GMT impacts are now factored into its long-term planning.

The Road Ahead: Sustained Growth Through 2029

Wheaton reaffirmed its 2025 production guidance of 600,000–670,000 GEOs, with a long-term target of 870,000 GEOs by 2029. Key growth drivers include:
- Goose Mine: A Canadian gold project expected to begin production in late 2025, adding 100,000+ GEOs annually.
- Platreef and Mineral Park: South African projects that will boost platinum and palladium output.

The company’s $2 billion undrawn credit facility and conservative financial stance provide ample flexibility to pursue accretive acquisitions or further streaming agreements.

Conclusion: A Precious Metal Play with Legs

Wheaton’s Q1 results are a masterclass in leveraging both rising commodity prices and operational execution. With a cash operating margin up 45% year-over-year, the company is proving its streaming model’s resilience. Even with GMT headwinds, Wheaton’s balance sheet—$1.1 billion in cash, zero debt—remains a fortress, enabling it to weather volatility and fund growth.

Investors should note two critical risks: commodity price exposure (gold is up ~10% YTD, but could falter if inflation eases) and project execution delays at new mines. That said, Wheaton’s diversified portfolio and low-cost structure position it to outperform peers.

With a forward price-to-cash flow ratio of ~12x (versus its 5-year average of ~10x), shares may be modestly rich. However, the long-term growth trajectory—870,000 GEOs by 2029—and dividend stability ($0.165/share, yielding ~0.7%) justify cautious optimism. For investors seeking exposure to precious metals with a low-risk profile, Wheaton remains a top-tier choice.