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Wheaton (WPM) Earnings & Sales Miss Estimates in Q4, Up Y/Y

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Wheaton Precious Metals Corp. (WPM - Free Report) reported adjusted earnings of 33 cents per share in fourth-quarter 2020, missing the Zacks Consensus Estimate of 34 cents by a whisk. However, the bottom-line figure surged 100.6% year over year.

The company generated revenues of $286 million during the reported quarter, up 28.2% on a year-over-year basis. This upside was driven by a 33% increase in the average realized gold equivalent price, partly offset by a 3% decline in the number of Gold Equivalent Ounces (GEOs) sold. The top line, however, missed the Zacks Consensus Estimate of $309 million.

Wheaton’s gold production was 93,137 ounces, down from the prior-year quarter’s 107,054 ounces. Attributable silver production declined 10.2% year over year to 6,509 ounces, while palladium production also slipped 6.4% year over year to 5,672 ounces. The company sold 147,277 GEOs during the December-end quarter, down from the prior-year quarter’s 152,514 GEOs.


In fourth-quarter 2020, average realized gold price was $1,882 per ounce, 27% higher than the year-ago quarter’s figure. Silver prices averaged $24.72 per ounce in the reported quarter, up 42.4% year over year. Palladium prices jumped 30.1% year over year to $2,348 per ounce.

Financial Position

The company had $193 million of cash in hand at the end of 2020, up from $104 million at 2019-end. It recorded an operating cash flow of $765 million in 2020 compared with $502 million in 2019. The company had $195 million outstanding under its revolving credit facility of $2 billion. During the December-end quarter, Wheaton repaid $293 million under the Revolving Facility. At the end of 2020, the company had a net debt of $2 million compared to $770 million at 2019-end.

In the fourth quarter, the company announced a quarterly dividend of 13 cents per share, reflecting an increase of 30% from 2019.

2020 Results

Wheaton reported adjusted earnings per share of $1.12 for 2020 compared with 54 cents reported in the prior year. Earnings beat the Zacks Consensus Estimate of $1.11 per share. Sales were up 27.3% year over year to $1 billion. However, the top line missed the Zacks Consensus Estimate of $1.12 billion.


Wheaton’s attributable production is estimated between 720,000 GEOs and 780,000 GEOs for the current year. Gold production is expected in a band of 370,000-400,000 ounces. Silver production is expected between 22.5 million ounces and 24 million ounces, while production of other metals is anticipated in a band of 40,000-45,000 GEOs.

Business Updates

On Nov 5, Wheaton entered into a precious metals purchase agreement with Aris Gold Corporation to acquire 6.5% of the gold production and 100% of the silver production from the Marmato Project located in Colombia. On Dec 11, the company entered into an agreement with Capstone Mining Corp. to purchase a 50% silver stream from its Cozamin Mine located in Zacatecas, Mexico.

Price Performance

Shares of Wheaton have appreciated 58.3% over the past year compared with the industry’s growth of 89.9%.

Zacks Rank & Stocks to Consider

Wheaton currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Impala Platinum Holdings Limited (IMPUY - Free Report) , Fortescue Metals Group Limited (FSUGY - Free Report) and BHP Group (BHP - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Impala Platinum has an expected earnings growth rate of 195.9% for the current fiscal year. The company’s shares have surged 84% in the past year.

Fortescue has a projected earnings growth rate of 84.3% for the current fiscal year. The company’s shares have soared 182% in a year’s time.

BHP Group has an estimated earnings growth rate of 65.6% for the current fiscal year. The company’s shares have appreciated 75% over the past year.

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