• Operating Cash Flows: Record quarterly operating cash flows of $254 million.
• Gold Equivalent Ounces (GEOs) Production: Approximately 450,000 GEOs year to date; on track for 2024 guidance of 550,000 to 620,000 GEOs.
• Revenue: Increased by 38% to $308 million.
• Net Earnings: $155 million, an increase of $38 million from the prior year.
• Sales Volumes: 123,000 GEOs, a 10% increase from the prior year.
• Cash and Cash Equivalents: $694 million as of September 30, 2024.
• Dividend: Quarterly dividend of $0.155 per share.
• Production Guidance: Forecast to increase by approximately 40% to over 800,000 GEOs by 2028.
• Streaming Agreements: New $625 million gold stream on Montage's Kona project and $100 million expansion on Rio2's Phoenix project.
• General and Administrative Expenses: $9.5 million for the third quarter; expected to be at the lower end of $41 million to $45 million for the year.

• Warning! GuruFocus has detected 5 Warning Sign with WPM.

Release Date: November 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wheaton Precious Metals Corp (NYSE:WPM) achieved record quarterly operating cash flows of $254 million, highlighting the effectiveness of their business model.
• The company is on track to meet its 2024 production guidance of 550,000 to 620,000 gold equivalent ounces.
• Wheaton Precious Metals Corp (NYSE:WPM) announced two significant streaming agreements, including a $625 million gold stream on Montage's Kona project, enhancing their growth trajectory.
• The company's balance sheet remains strong with $700 million in cash and a $2 billion undrawn revolving credit facility, providing financial flexibility.
• Wheaton Precious Metals Corp (NYSE:WPM) launched the Future of Mining challenge, reflecting their commitment to sustainability and innovation in the industry.

Negative Points

• Salobo's gold production decreased by approximately 9% compared to the third quarter of 2023 due to lower grades.
• Constancia's silver and gold production decreased by 7% and 45%, respectively, compared to the third quarter of 2023, primarily due to lower grades and planned stripping activities.
• Stillwater West operations are being placed into care and maintenance due to low platinum and palladium prices, impacting future production levels.
• The company faces a potential delay in a $163 million payment to Vale, which is likely to move to 2025.
• There is a significant lag in cobalt sales from Voisey's Bay due to long delivery timelines, affecting cash flow timing.

Q & A Highlights

Q: Wes, can you confirm if Copper World is the only new asset rolling into the new guidance for 2029? A: Yes, Copper World is the new asset coming in during the 2029 period. There are other assets within the five-year period, including new transactions, but Copper World is the one moving forward into the five-year guidance.

Q: Are there limits on how much debt Wheaton is willing to carry in partnerships, especially with the Phoenix transaction? A: We are primarily a streaming company and will not chase situations where more value is tied up in debt. We aim to be stream dominant in terms of value, but there is an increased appetite for one-stop shop financing, which may include some debt.

Q: What are you seeing in terms of deal sizes and opportunities in the market? A: We are seeing a focus on single asset development stage opportunities, ranging from $100 million to $350 million. There are a few over $500 million, but they don't necessarily fit Wheaton's parameters. The majority of opportunities are in first-world jurisdictions.

Q: How do you view the potential for consolidation in the sector? A: We are cautious about consolidation as smaller streaming companies may have structural flaws in their assets. We focus on acquiring assets at or below NAV, and consolidation would require a significant premium, which may not be justified.

Q: Can you provide an update on the cobalt production ramp-up at Voisey's Bay? A: We are seeing a ramp-up with a 60% increase in grade and recovery. Full ramp-up of the underground operations will take about 18 months, with steady-state production expected to be around 2 million pounds annually by 2025-2026.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.