Wheaton Precious Metals Q3 2025: Contradictions Emerge on Spring Valley Payments, Pipeline Focus, Antamina, Cobalt Consistency, and Capital Strategy

Date of Call: November 7, 2025

Financials Results

• Revenue: $476M, up 55% YOY

Guidance:

• 2025 production guidance unchanged at 600,000–670,000 gold-equivalent ounces; management remains on track to achieve it.
• PBND ≈152,000 GEOs (~2.9 months); expect PBND to stay at the higher end of forecasted 2–3 months for the remainder of 2025.
• Hemlo: expect the full $300M upfront payment at deal close in Q4 2025 and to begin recording production thereafter.
• Spring Valley: $670M paid in installments during construction (majority during development; ~ $310M near-term), including a $150M cost-overrun facility.
• Expect to fund ~ $2.5B of upfront payments by end-2029 without drawing debt given ~$1.2B cash, expected annual operating cash flows of ~$2.5B (next five years), and an undrawn $2B revolver + $500M accordion.

Business Commentary:

* Financial Performance and Revenue Growth:
- Wheaton Precious Metals reported record revenue of $476 million for Q3, up 55% compared to the previous year.
- The increase was driven by a 37% rise in commodity prices and a 13% increase in sales volumes.
- The company's earnings and operating cash flow also saw significant increases, with net earnings rising by 138% to $367 million and operating cash flow by 51% to $383 million.

• Production and Asset Performance:
• The company achieved 173,000 gold-equivalent ounces in Q3, marking a 22% increase from the prior year.
• Key assets such as Salobo and Antamina contributed significantly to this growth due to higher throughputs, grades, and recoveries.

• The ramp-up of production at new mines like Blackwater and Goose also contributed to this performance.

• Strategic Acquisitions and Growth Opportunities:

• Wheaton announced two streaming transactions: a gold stream on the Hemlo mine and another on the Spring Valley project, totaling over $1 billion in upfront payments.

• These acquisitions are part of Wheaton's strategy to support high-quality assets in stable jurisdictions and align with its long-term growth targets.

• Capital Management and Financial Flexibility:

• The company has over $1.2 billion in cash and an undrawn $2.5 billion revolving credit facility, providing substantial financial flexibility.
• Wheaton has committed to funding its existing streaming obligations and continues to pursue new opportunities without relying on debt.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management highlighted "record quarterly revenue of $476M, up 55% YOY," net earnings of $367M (up 138% YOY), and operating cash flow of $383M (up 51% YOY). They emphasized being "well‑positioned" with ~$1.2B cash and undrawn credit capacity and reiterated confidence in meeting 2025 guidance and funding commitments without debt.

Q&A:

• Question from Will Dowby (Berenberg): Yeah, good morning, Randy and team. Thank you very much for the call. I have two questions. Firstly, on future growth. You’ve got a really compelling growth profile, but I’m just sort of wondering how you think your volume growth stacks up versus peers, both on an absolute and a risk-adjusted basis. Sort of thinking in particular about some peers whose growth relies on restarts or on higher-risk jurisdictions. I’d be very interested to hear how you see your position in that context. Very clear, Haytham. Thank you. And then just a second question. You know, if we rewind a bit, say 10 years ago, your capital was largely going into repairing balance sheets. Five years ago was mostly sort of funding gold projects. Looking ahead, do you see the next five years as more about deploying capital into larger-scale copper projects given the current supply shortage there and the need for new mines to come online?
  Response: Wheaton expects ~250,000 oz/year of incremental production to 2029—mostly permitted and >90% in construction—about double peers’ growth, and sees large copper porphyries and base‑metal projects as a key financing opportunity for streaming alongside renewed silver opportunities.

• Question from Josh Wolfson (RBC Capital Markets): Yeah, thanks very much. I had a question first on Spring Valley. Some of the technical information out there is a bit light. I know there’s a 2014 43‑101 and then a feasibility study earlier this year, at least a summary of which. I noticed that Wheaton provided some of its own interpretations of what the mine will look like. I guess just maybe drilling down on some of the assumptions, would Wheaton be able to provide some perspective on how it sees the asset, you know, in terms of, you know, what the underlying assumptions or changes in its perspective was versus the updated feasibility study and also, you know, what we should think about recoveries? I noticed there’s a big difference between the original 2014 report and what was issued earlier this year. Thank you. All right, thank you. One more question. I know we’ve talked about some of the Nevada premiums that are out there. This might apply in that situation. You know, when you look at the value opportunity here and the valuation paid, you know, how would you assess this in comparison to some of the public consolidation opportunities that could be out there, you know, depending on the prices, obviously?
  Response: Spring Valley is a conventional Nevada heap‑leach/crush project with updated reserves and recoveries modeled by redox (oxide/transition/sulfide); management sees upside from current spot prices and exploration, and views Spring Valley as attractively priced versus costly Nevada M&A transactions.

• Question from Tanya Yagazkonic (Scotiabank): Oh, great. Good morning, everyone. Thank you very much for taking my questions. Some of them have been answered already. Maybe Haytham, for you, as I think about the environment, the opportunities out there, one of my questions was on silver. I think you touched it a little bit. You’re seeing more on the silver side than previously. Are we seeing some big silver opportunities? When you mentioned the $200‑$300 million range, were those mainly on the gold opportunities? Are you also seeing, because I am hearing, and I do not know if that is the same, that there is probably more assets for sale within the senior gold companies than the market expects? Just your Spring Valley acquisition, you know, if you assume that all of the resources get converted and you can mine out, you know, 4 million ounces minable, let’s say, would it be fair to say at spot that you’d be in that sort of 4%‑5% internal rate of return, like in line with the cost of capital? Also, can someone remind or re‑guide us on your depreciation and guidance for what you expect for 2025 and maybe 2026 with the new portfolio updates? Finally, what’s left in your equity investment portfolio?
  Response: They have an active pipeline (> a dozen opportunities), roughly a 60/40 gold‑to‑silver metal mix with many targets in the $200–$300M range and a few billion‑plus opportunities; management is actively pursuing silver streams, sees some senior divestitures returning, and notes a ~$260M equity book (not earmarked for divestment).

• Question from Morgan Pradier (Veritas Investment Research): Thank you. In terms of Antamina, I noticed that the depreciation dropped in half almost. What happened there? Also, in terms of Salobo, should we expect a strong Q4? I thought that there was like a little bit of higher grade in Q4.
  Response: Antamina’s depletion fell because permitted tailings capacity was expanded (effectively increasing reserves and lowering depletion); Salobo is expected to be reasonably flat in Q4 (some preventative maintenance was moved from Q4 into Q3).

• Question from George Eddy (UBS): Hi, Tim. Thanks for the call and nice update here again. Can I ask about the Spring Valley stream? Sorry, I joined a little bit late, so I may have missed this. The payment profile, can you remind me of the various conditions for the payment and the profile timeline, please? Also, talking before about all these asset opportunities coming up, some large ones... Is it fair to assume there’s potentially a bit of upside here with the new streams like Spring Valley? Given the environment is so strong right now, do you think that’s a fair—realization is a bit of upside?
  Response: The $670M Spring Valley payment is primarily drip‑fed during development (a near‑term ~ $310M over ~6–12 months followed by staged payments alongside developer equity contributions); management says Spring Valley and accelerated plans at existing assets provide upside to the company’s conservative growth forecast.

Contradiction Point 1

Spring Valley Stream Payment Profile and Timeline

It involves differing details about the payment profile and timeline for the Spring Valley stream acquisition, which could impact financial projections and expectations.

Can you clarify the Spring Valley stream payment profile timeline and conditions? - George Eddy (UBS)

2025Q3: The $670 million payment will be mostly during development, with a small upfront amount. Remaining funds will be instilled alongside the company's equity investment, drip-fed over construction. The timeline involves initial upfront payments before construction begins, with the majority going in during the construction phase. - Tim, Executive (Wheaton Precious Metals)

Have you considered the potential impact of accelerating Blackwater Phase 2? - Cosmos Chiu (CIBC)

2025Q2: We are very comfortable with the timing. We are also very comfortable with the ramp-up volume. The ramp-up volume and the timing is consistent with our own expectations. And we are very happy with that. - Randy V. J. Smallwood (CEO & Director)

Contradiction Point 2

Deal Pipeline Focus

It involves the focus of the deal pipeline, whether it is gold-focused or includes precious metals from base metals, which could influence the types of deals Wheaton Precious Metals is pursuing.

How does Wheaton’s future growth compare to peers in absolute and risk-adjusted terms? Will capital allocation shift toward copper projects over the next five years? - Will Dowby (Berenberg)

2025Q3: Most of this growth is through permitted and constructed projects. Streaming is expected to play a part in financing large-scale copper projects. Wheaton is also seeing more silver opportunities with increased silver prices. - Haytham Hodaly (President, Wheaton Precious Metals)

Is the deal pipeline still focused on gold, or are you seeing more base metals? - Daniel Edward Major (UBS)

2025Q2: About 2/3 of the pipeline are diversified base metals, and 1/3 are precious metals from precious metals producers, given strong margins. - Haytham Henry Hodaly (President)

Contradiction Point 3

Antamina Production and Reserves

It involves differing statements regarding Antamina's production and reserves, which are crucial for understanding the company's operational performance and resource base.

What caused the drop in Antamina's depletion? - Tanya Yagazkonic (Scotiabank)

2025Q3: The decline in depletion was due to a doubling of tailings capacity, leading to a significant increase in reserves and a reduced depletion rate. - Tim, Executive(CEO)

How does Antamina's 2027 mine plan compare to current levels, and what is the potential for a ramp-up? - Daniel Major (UBS)

2025Q1: Antamina is expected to see a significant ramp-up in production over the next two years due to moving into higher silver-grade areas. - Wes Carson(VP Mining Operations)

Contradiction Point 4

Cobalt Production and Sales Consistency

It involves differing statements regarding the consistency of Cobalt production and sales, which impacts understanding of the company's output and revenue stability.

Are there more silver opportunities with rising silver prices? - Tanya Yagazkonic (Scotiabank)

2025Q3: There are more silver opportunities emerging, especially as silver is primarily produced as a byproduct. - Tim, Executive & Randy Smallwood(CEO)

Can you provide an update on cobalt production and sales, and how to model shipments/sales for the remainder of the year? - Cosmos Chiu (CIBC)

2025Q1: Cobalt production is expected to be slightly lower than Q1 but consistent at around 450,000 pounds per quarter. - Wes Carson(VP Mining Operations)

Contradiction Point 5

Capital Deployment and Strategic Focus

It involves changes in strategic focus and capital deployment, which are crucial for understanding the company's long-term growth plans and investment priorities.

Can you elaborate on the technical assumptions for Spring Valley stream? - Josh Wolfson (RBC Capital Markets)

2025Q3: Wheaton has consistently deployed over $800 million annually on high-quality transactions. The company remains focused on accretive and high-quality gold streams, but there is also interest in polymetallic assets with precious metals byproducts, which represent about half of the opportunities in the pipeline. - Haytham Hodaly(President)

How will 2025 contractual obligations affect capital deployment, and what opportunities exist in gold and copper markets? - Lawson Winder (Bank of America Securities)

2024Q4: Our primary focus will continue to be on accelerating the cash available for deployment to accelerate the deployment of capital into gold. We will continue to focus on gold streams, on gold mines and gold projects and that represents about 90% of our pipeline. - Haytham Hodaly(President)