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Wheaton Precious Metals Corp (WPM) Q4 2024 Earnings Call Highlights: Record Revenue and ...

In This Article:

  • 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.

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.