Wheaton Precious Metals (TSX: WPM) reported its financial results for the first quarter of 2025. Revenue soared 58.5% to $470.4 million from $296.8 million in Q1 2024.
While sales volumes of gold and silver rose 21.0% and 10.2% respectively, palladium sales plummeted by 48.5% and cobalt sales declined 14.2%. Overall GEOs sold jumped 16.2% to 165,297.
The average realized gold equivalent price rose 36.4% year-over-year to $2,846 per GEO, accounting for much of the revenue gain. Cash operating margin per GEO surged 45% to $2,400, outpacing even the rise in commodity prices. However, average cash costs also ticked up to $446 per GEO from $433 per GEO last year.
Cost of sales excluding depletion increased 21.2% to $74.6 million, while total cost of sales rose 20.8% to $151.3 million. Depletion expenses climbed 20.4% to $76.7 million.
Despite this, gross margin nearly doubled to $319.1 million, lifting earnings from operations 83.7% to $290.7 million. Non-operating items remained stable but a $45 million Global Minimum Tax charge weighed on results—a new recurring cost absent in Q1 2024.
Net earnings rose 54.8% year-over-year to $254 million. Adjusted net earnings stood at $250.8 million, up 53.3%, translating to $0.553 per share.
Wheaton generated $360.8 million in operating cash flow, a 64.5% jump. Capital allocation remained aggressive: $95.7 million was spent on mineral stream interests in Q1, followed by $303 million in additional payments after quarter-end—including $156 million for the Koné project and $144 million for Salobo III.
Free cash flow was strong, enabling the company to maintain its dividend of $0.165 per share and forgo its at-the-market equity program.
As of March 31, Wheaton held $1.09 billion in cash and no debt, with a fully undrawn $2 billion revolving credit facility.
Total GEO production fell 4.4% year-over-year to 151,065. Silver output dropped 13.7% and palladium plunged 40.4%, while cobalt production more than doubled and gold edged up by 0.8%. GEO production from Salobo—Wheaton’s anchor asset—declined 15.2% quarter-over-quarter but remained up year-on-year.
This divergence between production and sales reflects a drawdown in previously stockpiled units. Produced but not yet delivered dropped by 27,286 GEOs to 136,058.
2025 production guidance remains unchanged at 600,000 to 670,000 GEOs, with a long-term target of 950,000 GEOs annually by 2034.
Wheaton last traded at $82.46 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.
