Wheaton Precious Metals Touts Record Annual Revenue, But Net Earnings Drop Due To Impairment Charge
Wheaton Precious Metals (TSX: WPM) has announced its Q4 and full-year 2024 results, reporting record annual revenue of $1.29 billion in 2024, an increase of 26.4% from $1.02 billion in 2023. This top-line growth was primarily driven by a 20% year-over-year increase in the average realized gold-equivalent price and a 5% uptick in the volume of GEOs sold.
In the fourth quarter alone, revenue climbed 21.4% to $381 million compared to $313 million in the same period last year.
However, quarterly net earnings dropped 47.7% year-over-year, falling from $168 million in Q4 2023 to $88 million in Q4 2024. For the full year, net earnings also declined by 1.6% from $538 million in 2023 to $529 million in 2024. Management attributes this dip to a significant impairment charge related to Voisey’s Bay.
In 2018, Wheaton finalized a cobalt streaming deal with Vale at the Voisey’s Bay mine. At the end of 2024, the company recognized a $109 million impairment on this arrangement.
In contrast, adjusted net earnings for the fourth quarter came in at $199 million compared to last year’s $165 million. For the full year, the figure rose to $640 million—a 20.1% jump from $533 million in 2023.
Quarter-over-quarter, operating cash flow jumped by 31.9% to $319 million in Q4 2024 from $242 million in Q4 2023. Operating cash flow meanwhile reached a new annual record of $1.03 billion in 2024, up 36.9% from $751 million a year earlier.
Wheaton closed 2024 with $818 million in cash and no outstanding debt, alongside an undrawn $2 billion revolving credit facility. The company invested $115 million in new and existing precious metals purchase agreements during Q4.
Wheaton declared total annual dividends of $0.62 per share in 2024—a record amount—and announced a further 6.5% rise for 2025 to $0.165 per quarter, marking the second consecutive annual increase in the dividend.
The firm exceeded its 2024 guidance by producing 635,000 GEOs, topping its original range of 550,000 to 620,000 GEOs. Production in Q4 2024 came in at 187,500 GEOs, 13.8% higher than Q4 2023.
Despite the uptick in overall production, the volume of GEOs actually sold during Q4 decreased by 8.1% year-over-year to 143,000 ounces from last year’s 155,000 ounces. By year-end, Wheaton had approximately 163,600 GEOs produced but not yet delivered, at the upper end of its two- to three-month target range.
Wheaton’s average cash cost per GEO in 2024 was $436, lower than the $451 recorded in 2023. This reduction, combined with higher average selling prices, lifted the 2024 cash operating margin per GEO to $1,977—27% above the prior year. For Q4 2024, the cash operating margin jumped by 41% versus the same quarter last year.
Looking ahead, Wheaton’s guidance for 2025 forecasts production between 600,000 and 670,000 GEOs, reflecting roughly 10% growth at the midpoint versus 2024’s guidance midpoint. Management expects key contributions from Antamina, Salobo, and several new streams—such as Blackwater and Goose—set to start operating by the end of 2025.
Over the next five years, Wheaton forecasts a 40% production increase to 870,000 GEOs by 2029, illustrating the company’s ambitious growth trajectory.
Wheaton last traded at $105.02 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
