May 30, 2023

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Wheaton (WPM) Q1 Earnings In Line, Sales Beat Estimates, Shares Up

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Wheaton Precious Metals Corp.’s WPM shares have gained 3.2% since the company reported improved first-quarter 2021 results on the back of higher average realized gold equivalent price. Adjusted earnings improved 53.6% year over year to 36 cents per share in the quarter which came in line with the Zacks Consensus Estimate.

The company generated revenues of a record $324 million during the reported quarter, up 27% on a year-over-year basis. This upside was driven by a 27% increase in the average realized gold equivalent price. The top line also beat the Zacks Consensus Estimate of $313 million.

Wheaton’s gold production was 77,733 ounces, down from the prior-year quarter’s 94,999 ounces. Attributable silver production edged up 0.7% year over year to 6,754 ounces andpalladium production increased 8.6% to 5,769 ounces. The company sold 175,419 GEOs during the March-end quarter, slightly up from the prior-year quarter’s 175,154 GEOs.

Wheaton Precious Metals Corp. Price, Consensus and EPS Surprise

Wheaton Precious Metals Corp. Price, Consensus and EPS Surprise

Wheaton Precious Metals Corp. price-consensus-eps-surprise-chart | Wheaton Precious Metals Corp. Quote


In first-quarter 2021, average realized gold price was $1,798 per ounce, 13.1% higher than the year-ago quarter’s figure. Silver prices averaged $26.12 per ounce in the reported quarter, up 53.3% year on year. Palladium prices were up 4% year over year to $2,392 per ounce.

Financial Position

The company had $191 million of cash in hand at the end of first-quarter 2021 compared with $193 million at the end of 2020. It recorded an operating cash flow of $232.5 million in the first quarter compared with the prior-year quarter’s $178 million. The company fully paid a revolving credit facility of $2 billion.

In the first quarter, the company announced a quarterly dividend of 14 cents per share, reflecting an increase of 40% from the year-ago quarter.


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

Business Updates

On Feb 19, Wheaton closed its precious metals purchase agreement with Capstone Mining Corp. to purchase a 50% silver stream from the Cozamin Mine located in Zacatecas, Mexico. On Apr 15, the company wrapped up the deal 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 Mar 25, the company entered into an agreement Capstone to purchase 100% of the payable gold production from the Santo Domingo project located in the Atacama Region, Chile. Moreover, the company started receiving first cobalt from Voisey’s Bay mine in the first quarter.

Price Performance

Shares of Wheaton have gained 9.7% over the past three months, compared with the industry’s growth of 29.3%.


Zacks Rank & Stocks to Consider

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

Better-ranked stocks in the basic materials space include ArcelorMittal MT, Celanese Corp. CE and Dow Inc. DOW. All of these stocks flaunt a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

ArcelorMittal has a projected earnings growth rate of 984.7% for the current fiscal year. The company’s shares have soared nearly 179% in the past year.

Celanese has an expected earnings growth rate of 68.3% for the current fiscal year. The company’s shares have rallied around 90% over the past year.

Dow has a projected earnings growth rate of 261.6% for the current fiscal year. The company’s shares have gained roughly 75% in a year’s time.

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