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Can Wheaton Precious Metals Maintain Its Solid Free Cash Flow Rally?
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Key Takeaways
Wheaton Precious Metals posted a record $1.9B operating cash flow in 2025, driven by higher margins.
WPM expects 2026 production to jump 30.5% at the midpoint, aided by Antamina and new assets.
WPM targets 50% production growth by 2030, supporting the outlook for higher earnings and cash flow.
Wheaton Precious Metals Corp. (WPM - Free Report) reported a record operating cash flow of $1.9 billion in 2025 compared with $1.03 billion in 2024. The upside was driven by higher gross margin.
Wheaton Precious Metals had around $1.15 billion of cash in hand at the end of 2025 compared with $0.82 billion at the end of 2024. The company reported record annual dividends of 66 cents per share for 2025. Backed by a strong 2025 performance, WPM raised its first-quarter 2026 dividend to 19.5 cents, marking an 18% increase from the fourth quarter.
Wheaton Precious Metals’ 2025 gold equivalent production increased 8.6% year over year and surpassed the company’s guidance. A major driver of this growth was the solid performance at Salobo due to higher gold grades. Recoveries, higher throughput and grades at Peñasquito, along with higher grades at Constancia, offset the impacts of lower production from Goose and Mineral Park.
WPM expects 2026 production of 860,000-940,000 GEOs, marking a year-over-year increase of 30.5% at the midpoint. Along with higher gold and silver prices, the upside will be driven by 70,000 GEOs at Antamina. Newly operating assets like Blackwater, Mineral Park, Fenix, Hemlo, Goose and Platreef will aid growth.
The company expects production growth beyond 2026. It guides production to increase 50% to 1,200,000 GEOs by 2030, driven by growth from operating assets. The company maintains attributable production from 2031 to 2035 at 1,200,000 GEOs annually, incorporating additional incremental production from pre-development assets.
The prospects of solid production, driven by mine performances, along with the solid rally in gold prices, indicate that the company will likely deliver higher earnings and cash flow in the near future.
Recent Performance of Wheaton Precious Metals’ Peers
SSR Mining Inc. (SSRM - Free Report) reported free cash flow of $241.6 million for 2025. In 2025, the company produced 447,207 gold equivalent ounces, which came within SSRM’s guidance. SSR Mining produced 399,267 gold equivalent ounces in 2024.
For 2026, SSR Mining expects gold equivalent production of 450,000-535,000 ounces, indicating a year-over-year increase of 10% at the midpoint.
AngloGold Ashanti PLC (AU - Free Report) delivered a record $2.9 billion in free cash flow in 2025, a whopping 204% year-over-year rise. The upside was driven by AngloGold Ashanti’s continued cost discipline, higher production and higher gold prices.
AngloGold Ashanti’s gold production for 2026 is projected at 2.80-3.17 million ounces. This suggests a year-over-year dip of 3% at the midpoint.
WPM’s Price Performance, Valuation & Estimates
Wheaton Precious Metals shares have surged 64.1% in a year, outpacing the industry's 36% growth. In comparison, the Zacks Basic Materials sector and the S&P 500 have returned 23.7% and 19%, respectively.
Image Source: Zacks Investment Research
WPM is currently trading at a forward 12-month price-to-earnings multiple of 28.71X, a premium to the industry average of 12.98X.
Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Wheaton Precious Metals’ 2026 sales is $3.17 billion, indicating a 37% year-over-year jump. The consensus mark for the year’s earnings is pegged at $4.36 per share, suggesting a year-over-year rally of 43.8%.
The Zacks Consensus Estimate for 2027 sales implies a 0.5% year-over-year rise. The same for earnings suggests a dip of 6.3%.
EPS estimates for 2026 and 2027 have moved north over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Wheaton Precious Metals Maintain Its Solid Free Cash Flow Rally?
Key Takeaways
Wheaton Precious Metals Corp. (WPM - Free Report) reported a record operating cash flow of $1.9 billion in 2025 compared with $1.03 billion in 2024. The upside was driven by higher gross margin.
Wheaton Precious Metals had around $1.15 billion of cash in hand at the end of 2025 compared with $0.82 billion at the end of 2024. The company reported record annual dividends of 66 cents per share for 2025. Backed by a strong 2025 performance, WPM raised its first-quarter 2026 dividend to 19.5 cents, marking an 18% increase from the fourth quarter.
Wheaton Precious Metals’ 2025 gold equivalent production increased 8.6% year over year and surpassed the company’s guidance. A major driver of this growth was the solid performance at Salobo due to higher gold grades. Recoveries, higher throughput and grades at Peñasquito, along with higher grades at Constancia, offset the impacts of lower production from Goose and Mineral Park.
WPM expects 2026 production of 860,000-940,000 GEOs, marking a year-over-year increase of 30.5% at the midpoint. Along with higher gold and silver prices, the upside will be driven by 70,000 GEOs at Antamina. Newly operating assets like Blackwater, Mineral Park, Fenix, Hemlo, Goose and Platreef will aid growth.
The company expects production growth beyond 2026. It guides production to increase 50% to 1,200,000 GEOs by 2030, driven by growth from operating assets. The company maintains attributable production from 2031 to 2035 at 1,200,000 GEOs annually, incorporating additional incremental production from pre-development assets.
The prospects of solid production, driven by mine performances, along with the solid rally in gold prices, indicate that the company will likely deliver higher earnings and cash flow in the near future.
Recent Performance of Wheaton Precious Metals’ Peers
SSR Mining Inc. (SSRM - Free Report) reported free cash flow of $241.6 million for 2025. In 2025, the company produced 447,207 gold equivalent ounces, which came within SSRM’s guidance. SSR Mining produced 399,267 gold equivalent ounces in 2024.
For 2026, SSR Mining expects gold equivalent production of 450,000-535,000 ounces, indicating a year-over-year increase of 10% at the midpoint.
AngloGold Ashanti PLC (AU - Free Report) delivered a record $2.9 billion in free cash flow in 2025, a whopping 204% year-over-year rise. The upside was driven by AngloGold Ashanti’s continued cost discipline, higher production and higher gold prices.
AngloGold Ashanti’s gold production for 2026 is projected at 2.80-3.17 million ounces. This suggests a year-over-year dip of 3% at the midpoint.
WPM’s Price Performance, Valuation & Estimates
Wheaton Precious Metals shares have surged 64.1% in a year, outpacing the industry's 36% growth. In comparison, the Zacks Basic Materials sector and the S&P 500 have returned 23.7% and 19%, respectively.
WPM is currently trading at a forward 12-month price-to-earnings multiple of 28.71X, a premium to the industry average of 12.98X.
The Zacks Consensus Estimate for 2027 sales implies a 0.5% year-over-year rise. The same for earnings suggests a dip of 6.3%.
EPS estimates for 2026 and 2027 have moved north over the past 60 days.
The WPM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.