• Revenue: Record quarterly revenue of $381 million, a 21% increase over the prior year.
• Gross Margin: $247 million, a 40% increase over the comparable period of the prior year.
• Net Earnings: $88 million, impacted by a $109 million impairment charge.
• Adjusted Net Earnings: $199 million, a quarterly record, with adjusted earnings per share of $0.44, a 21% increase over the prior year.
• Annual Revenue for 2024: Approximately $1.3 billion, a 26% increase, representing a company record.
• Annual Gross Margin for 2024: Increased by $229 million to $803 million.
• Annual Adjusted Net Earnings for 2024: Increased by 20% to $640 million.
• Operating Cash Flow: Record quarterly cash flow from operations of $319 million, a 30% increase over the fourth quarter of 2023.
• Dividend: Increased by 6.5% to $0.165 per share, with over $280 million distributed in 2024.
• Gold Equivalent Ounces (GEOs) Production: 635,000 GEOs for 2024, exceeding annual guidance.
• Sales Volumes: 143,000 GEOs, an 8% decrease relative to the fourth quarter of 2023.
• General and Administrative Expenses: $10.5 million for Q4 2024, with total annual G&A of $40.7 million.
• Cash and Cash Equivalents: $818 million as of December 31, 2024.

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

Release Date: March 14, 2025

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 revenue, adjusted net earnings, and operating cash flows in 2024.
• Annual production exceeded the top end of guidance with 635,000 gold equivalent ounces produced.
• The company announced a 6.5% increase in its quarterly dividend, maintaining a leading payout ratio in the sector.
• Wheaton Precious Metals Corp (NYSE:WPM) was recognized as one of the 2025 Global 100 most Sustainable Corporations and received an AAA ESG rating by MSCI.
• The company has a strong growth forecast, expecting a 40% increase in annual production to 870,000 gold equivalent ounces by 2029.

Negative Points

• Wheaton Precious Metals Corp (NYSE:WPM) recognized an impairment charge of $109 million due to a decline in market cobalt prices.
• Gold production at Constancia decreased by approximately 18% in the fourth quarter of 2024 due to lower gold grades.
• Co-product production at Penasquito is expected to decline in 2025 as mining transitions to lower silver grade areas.
• General and administrative expenses are expected to increase to $50 million to $55 million in 2025, up from $40.7 million in 2024.
• The company faces challenges with the timing and ramp-up of new projects, which could impact production forecasts.

Q & A Highlights

Q: The market has been impressed with the dividend increase, but the payout is lower than the 20% to 30% range previously discussed. Is there a plan to increase it further? A: Randy Smallwood, CEO, explained that maintaining a healthy balance sheet is crucial to take advantage of opportunities. The company aims to balance commitments and cash flow, and the dividend increase reflects their confidence in their growth profile.

Q: Could Wheaton deploy the same amount of capital in 2025 as in 2024, given the $882 million in contractual obligations? A: Haytham Hodaly, SVP of Corporate Development, stated that Wheaton has historically deployed over $800 million annually on high-quality transactions. They see opportunities ranging from $100 million to $1 billion and will continue to pursue accretive deals.

Q: How should we think about production in the first half versus the second half of the year? A: Gary Brown, CFO, indicated that production is expected to be 45% in the first half and 55% in the second half, with a bias towards the latter half due to mine startups and ramp-ups.

Q: Are there any seasonal impacts or maintenance downtimes to consider in Wheaton's operations? A: Wesley Carson, VP of Mining Operations, noted that Salobo experiences a rainy season in the first quarter, but most other operations are not seasonally affected. There are no significant maintenance downtimes expected.

Q: With gold prices at all-time highs, will Wheaton focus more on silver streams? A: Haytham Hodaly mentioned that while they would like to add more silver, it typically comes as a byproduct of polymetallic assets. Wheaton will continue to transact in a manner that ensures solid returns, regardless of commodity price fluctuations.

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