Wheaton Precious Metals(WPM) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Wheaton Precious Metals achieved record revenue of approximately $1.3 billion in 2024, a 26% increase from the previous year, driven by a 20% rise in realized commodity prices and a 5% increase in sales volumes [31] - Adjusted net earnings reached a record$ 640 million, up 20% year-over-year, with adjusted earnings per share at $0.44, a 21% increase [30][31] - The company reported record quarterly revenue of$ 381 million in Q4 2024, with a gross margin of $247 million, reflecting increases of 21% and 40% respectively compared to Q4 2023 [27] Business Line Data and Key Metrics Changes - Annual production totaled 635,000 gold equivalent ounces (GEOs), exceeding the top end of production guidance for the year [8] - In Q4 2024, Salobo produced 84,000 ounces of attributable gold, a 17% increase from Q4 2023, while silver production increased by 16% to 970,000 ounces [17][18] - Penasquito's silver production surged by approximately 138% year-over-year, producing over 2.4 million ounces in Q4 2024 [21] Market Data and Key Metrics Changes - The company anticipates a production increase in 2025, projecting attributable production of 350,000 to 390,000 ounces of gold and 20.5 million to 22.5 million ounces of silver [25] - The five-year production forecast estimates a 40% increase to 870,000 GEOs by 2029, driven by new projects and existing operations [11][25] Company Strategy and Development Direction - Wheaton is focused on reinforcing its growth profile through strategic acquisitions, having committed$ 910 million on four precious metals transactions in 2024 [37] - The company aims to maintain a strong balance sheet to capitalize on future opportunities while committing to a progressive dividend policy [52][46] - Wheaton has been recognized for its sustainability efforts, being one of only two resource-focused companies to be included in the 2025 Global 100 Most Sustainable Corporations [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong cash flows and a robust pipeline of development projects [45][34] - The CEO highlighted the importance of maintaining a healthy balance sheet to take advantage of investment opportunities in a strong gold market [52][63] Other Important Information - The company declared a quarterly dividend of 16.5 cents per share, a 6.5% increase from the previous quarter, reflecting a commitment to returning value to shareholders [35] - An impairment charge of $109 million was recognized due to a decline in market cobalt prices, impacting net earnings [29][30] Q&A Session Summary Question: Dividend Payout Ratio - The management acknowledged that the current payout ratio is lower than the previously discussed range, emphasizing the need to balance cash reserves for future opportunities [51][52] Question: Capital Deployment in 2025 - Management indicated that they expect to deploy a similar amount of capital in 2025 as in 2024, focusing on high-quality transactions [59][60] Question: Production Guidance for New Mines - Management provided guidance indicating a bias towards higher production in the second half of 2025, estimating 45% in the first half and 55% in the second half [77] Question: Salobo Production Profile - Management described Salobo's production profile as static over the next few years, with expected grade fluctuations typical of open-pit operations [144]