Wheaton Precious Metals(US:WPM) ZACKSยท2025-05-13 18:20Core Insights - Wheaton Precious Metals Corp. (WPM) reported adjusted earnings per share of 55 cents for Q1 2025, exceeding the Zacks Consensus Estimate of 50 cents, marking a year-over-year improvement of 53.2% [1] - The company generated revenues of $470 million in Q1 2025, reflecting a 58.5% increase year-over-year, driven by a 16.2% rise in Gold Equivalent Ounces (GEOs) sold [2] - Average realized gold price was $2,872 per ounce, up 38.6% year-over-year, while silver prices increased by 36% to $32.33 per ounce [2] Revenue and Production - Wheaton's gold production for Q1 2025 was 92,681 ounces, slightly up from 91,939 ounces in the prior-year quarter, but attributable silver production decreased by 13.7% to 4.73 million ounces [3] - The total production of GEOs was 151,065, down 4.4% from 158,072 GEOs in the previous year [3] Financial Performance - Total cost of sales increased by 20.8% year-over-year to approximately $151 million, while gross profit rose by 86% to $319 million, resulting in a gross margin of 67.8% compared to 57.8% in the prior-year quarter [4] - Average cash costs were $446 per GEO, up from $433 in the previous year, with cash operating margin increasing by 45% year-over-year to $2,400 per GEO sold [5] Balance Sheet and Cash Flow - At the end of Q1 2025, Wheaton had $1.08 billion in cash, up from $0.8 billion at the end of 2024, with operating cash flow reported at $361 million compared to $219 million in Q1 2024 [6] - The company has a $2 billion undrawn revolving credit facility [6] Future Outlook - For 2025, gold production is expected to be between 350,000 and 390,000 ounces, while silver production is projected to be between 20.5 million and 22.5 million ounces [7] Market Performance - WPM shares have increased by 46.1% over the past year, contrasting with a 6.4% decline in the industry [8] Peer Comparison - Royal Gold, Inc. reported an adjusted EPS of $1.51 for Q1 2025, a 66% year-over-year increase, while Kinross Gold Corporation posted adjusted earnings of 30 cents per share, missing the Zacks Consensus Estimate [11] - B2Gold Corp reported adjusted EPS of 9 cents for Q1 2025, beating estimates and showing a 50% year-over-year improvement [12]