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Wheaton Precious Q1 Earnings Beat Estimates, Revenues Rise Y/Y

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Wheaton Precious Metals Corp. (WPM - Free Report) reported adjusted earnings per share of 55 cents in first-quarter 2025, which topped the Zacks Consensus Estimate of 50 cents. The bottom line improved 53.2% year over year.

WPM Q1 Revenues Reflect Higher Gold & Silver Prices

The company generated revenues of $470 million in the reported quarter, up 58.5% on a year-over-year basis. The upside was driven by a 16.2% increase in Gold Equivalent Ounces (GEOs) sold. The top line surpassed the Zacks Consensus Estimate of $415 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

In first-quarter 2025, the average realized gold price was $2,872 per ounce. The figure was 38.6% higher than the year-ago quarter. Silver prices were $32.33 per ounce in the reported quarter, up 36% year over year. Palladium prices were $965 per ounce compared with $980 per ounce in the prior-year quarter.

Wheaton Precious’ Q1 Gold Equivalent Production Dips Y/Y

Wheaton’s gold production was 92,681 ounces, up from the prior-year quarter’s 91,939 ounces. Attributable silver production decreased 13.7% year over year to 4,733 4.73 million ounces and palladium production decreased 40.4% to 2,661 ounces. The company produced 151,065 GEOs in the March-end quarter, down 4.4% from the prior-year quarter’s 158,072 GEOs. Our model predicted production of 155,606 GEOs for the quarter.

WPM’s Margins Rise Y/Y in Q1

The total cost of sales was up 20.8% year over year to around $151 million in the first quarter. The gross profit was up 86% to $319 million. The gross margin was 67.8% in the reported quarter compared with 57.8% in the prior-year quarter.

General and administrative expenses increased 29.3% year over year to $13.5 million. Earnings from operations were $291 million, an 83.7% rise from $158 million in the first quarter of 2024.

Average cash costs in the first quarter of 2025 were $446 per GEO, up from $433 in the year-ago quarter. The cash operating margin increased 45% year over year to $2,400 per GEO sold due to a higher realized price per ounce.

Wheaton Precious’ Balance Sheet Updates

Wheaton had $1.08 billion of cash in hand at the end of the first quarter of 2025 compared with $0.8 billion at the end of 2024. It reported an operating cash flow of $361 million in the first quarter of 2025 compared with $219 million in the first quarter of 2024. WPM has a $2-billion undrawn revolving credit facility.

WPM’s 2025 Outlook

Gold production is expected to be in the band of 350,000-390,000 ounces. Silver production is projected to be between 20.5 million and 22.5 million ounces. The production of other metals is anticipated to be in the band of 12,500-13,500 GEOs.

Wheaton Precious’ Price Performance

WPM shares have gained 46.1% in the past year against the industry’s 6.4% decline.

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WPM’s Zacks Rank

Wheaton Precious currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wheaton Precious’ Peer Performances

Royal Gold, Inc. (RGLD - Free Report) reported an adjusted EPS of $1.51 in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.37. The bottom line increased 66% year over year.

Royal Gold generated revenues of $193 million, up 30% year over year.

Kinross Gold Corporation (KGC - Free Report) posted adjusted earnings of 30 cents per share, up from the prior-year quarter’s 10 cents. The bottom line missed the Zacks Consensus Estimate of 22 cents.

Kinross Gold’s revenues rose 38.4% year over year to $1.49 billion in the fourth quarter. KGC topped the Zacks Consensus Estimate of $1.29 billion.

B2Gold Corp (BTG - Free Report) reported adjusted earnings per share (EPS) of 9 cents for first-quarter 2025, beating the Zacks Consensus Estimate of 8 cents. The bottom line improved 50% year over year.

B2Gold generated revenues of $532 million in first-quarter 2025 compared with the prior-year quarter’s $461 million.

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