Wheaton Precious Metals’ Record 2024 Earnings: Growth Amid Challenges

Wheaton Precious Metals ((TSE:WPM)) has held its Q4 earnings call. Read on for the main highlights of the call.

Wheaton Precious Metals’ recent earnings call conveyed a robust performance for 2024, marked by record revenue and growth. The company exceeded its production guidance and made strategic investments that promise a positive outlook. Despite challenges such as an impairment charge related to the Voisey’s Bay cobalt stream and anticipated production declines in certain segments, the overall sentiment remained optimistic, with the positive aspects significantly outweighing the challenges.

Record Revenue and Growth

Wheaton Precious Metals reported record revenue, adjusted net earnings, and operating cash flows in 2024. The company saw a 26% increase in revenue, reaching approximately $1.3 billion, and a 21% rise in gross margin compared to the previous year. This financial achievement underscores Wheaton’s strong market position and operational efficiency.

Exceeding Production Guidance

The company surpassed its annual production guidance, achieving 635,000 gold equivalent ounces. This success was driven by strong performances at key sites, including Salobo, Constancia, and Penasquito, showcasing Wheaton’s operational capabilities and strategic planning.

New Investments and Portfolio Diversification

Wheaton expanded its portfolio with four new investments, notably a gold stream on Montage Gold’s Kone project. These strategic acquisitions enhance Wheaton’s geographic presence and strengthen its partnerships, positioning the company for future growth and diversification.

Projected Growth in Production

Looking ahead, Wheaton forecasts a 40% increase in production to 870,000 gold equivalent ounces by 2029. This growth is expected to be driven by both organic expansion and new asset production, reflecting Wheaton’s commitment to scaling its operations.

Increased Dividend Payout

In line with its strong financial performance, Wheaton announced a 6.5% increase in its quarterly dividend. This move reinforces the company’s leadership in payout ratios within the precious metals sector, providing value to its shareholders.

Recognition in Sustainability

Wheaton’s commitment to sustainable operations was recognized as it was named one of the 2025 Global 100 Most Sustainable Corporations by Corporate Knights and received a triple-A ESG rating from MSCI. These accolades highlight Wheaton’s dedication to responsible business practices.

Impairment Charge on Voisey’s Bay Cobalt Stream

The company reported an impairment charge of $109 million due to a sustained decline in market cobalt prices, which impacted net earnings. This challenge underscores the volatility in commodity markets and its effects on financial outcomes.

Expected Decline in 2025 Gold Production at Constancia

Hudbay announced that gold production at Constancia is expected to decrease in 2025 due to the depletion of the Pampacancha deposit. This anticipated decline highlights the challenges in maintaining production levels amid resource depletion.

Transition Challenges at Penasquito

Wheaton anticipates a decline in coproduct production at Penasquito in 2025 as mining transitions to pits with lower silver grades. This transition poses operational challenges that the company will need to navigate.

Increased General and Administrative Expenses

General and administrative expenses are projected to rise to between $50 million and $55 million in 2025, driven by costs associated with the Future of Mining Challenge and the expiring ATM program. This increase reflects the company’s investment in future growth initiatives.

Forward-Looking Guidance

Wheaton Precious Metals’ forward-looking guidance remains optimistic, with record financial performance in 2024 and a stable production forecast. The company projects a 40% increase in annual production by 2029 and anticipates inaugural production from new projects like Blackwater and Goose in 2025. With a strong cash balance and credit facility, Wheaton is well-positioned to support ongoing and future projects, reinforcing its growth trajectory.

In conclusion, Wheaton Precious Metals’ earnings call highlighted a year of record achievements and strategic advancements, despite facing some challenges. The overall sentiment was positive, with a clear focus on growth and sustainability. Investors can look forward to Wheaton’s continued success and commitment to delivering value.