Wheaton (WPM) Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Wheaton Precious Metals Corp. WPM reported adjusted earnings per share of 36 cents in first-quarter 2024, which topped the Zacks Consensus Estimate of 29 cents. The bottom line improved 56% year over year.The company generated revenues of $297 million in the reported quarter, up 38.4% on a year-over-year basis. The upside was driven by a 31% increase in Gold Equivalent Ounces (GEOs) sold. The top line surpassed the Zacks Consensus Estimate of $285 million.Wheaton’s gold production was 93,370 ounces, up from the prior-year quarter’s 73,019 ounces. Attributable silver production increased 6.7% year over year to 5,476 ounces and palladium production increased 20.5% to 4,463 ounces. The company produced 160,133 GEOs in the March-end quarter, up 18.9% from the prior-year quarter’s 134,730 GEOs.

Wheaton Precious Metals Corp. Price, Consensus and EPS Surprise

 

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

Prices

In first-quarter 2024, the average realized gold price was $2,073 per ounce. The figure was 8.9% higher than the year-ago quarter. Silver prices were $23.74 per ounce in the reported quarter, up 3.9% year over year. Palladium prices were $980 per ounce compared with $1,607 per ounce in the prior-year quarter.

Financial Position

Wheaton had $306 million of cash in hand at the end of the first quarter of 2024 compared with $547 million at the end of 2023. It reported an operating cash flow of $219 million in the first quarter of 2024 compared with $135 million in the first quarter of 2023. WPM has a $2-billion undrawn revolving credit facility.In the quarter, the company announced a quarterly dividend of 15 cents per share.

2024 Guidance

Wheaton projects attributable production between 550,000 GEOs and 620,000 GEOs for 2024. Notably, it produced 584,389 GEOs in 2023. Gold production is expected to be 325,000-370,000 ounces, suggesting a slight decline from the 374,585 produced in 2023. Silver production is projected between 18.5 and 20.5 million ounces, indicating growth from the 17.2 million ounces reported in the prior year. The production of other metals is anticipated to be 12,000-15,000 GEOs in 2024. WPM produced 12,275 GEOs of other metals in 2023.

Price Performance

WPM shares have gained 9.5% in the past year compared with the industry’s 14.3% growth.

 

Zacks Investment Research

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 Zacks Rank

Wheaton currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Peer Stocks

Reliance, Inc. RS posted adjusted earnings of $5.23 per share in first-quarter 2024, down from $6.43 per share in the year-ago quarter.RS recorded net sales of $3.64 billion, down 8.1% year over year. The top line lagged the Zacks Consensus Estimate of $3.73 billion.Teck Resources TECK reported first-quarter 2023 adjusted earnings per share of 56 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line marked a 58% plunge from earnings of $1.32 per share in the year-ago quarter.TECK reported net sales of $2.96 billion compared with $2.8 billion reported in the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $2.99 billion.Piedmont Lithium Inc. PLL came out with a quarterly loss of 61 cents per share, wider than the Zacks Consensus Estimate of a loss of 54 cents. The company posted a loss of 47 cents in the year-ago quarter.PLL posted revenues of $13.4 million for the quarter ended March 2024, missing the Zacks Consensus Estimate of $14 million.

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Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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