Wheaton (WPM) Q4 2025 Results Conference Call Transcript

Wheaton Precious Metals Q4 2025 Earnings Conference Call

Image source: The Motley Fool.

Event Details

Date: Friday, March 13, 2026, at 11 a.m. Eastern Time

Participants

• Randy Smallwood – President and Outgoing CEO
• Haytham Hodaly – Incoming CEO
• Wesley Carson – Senior Vice President, Operations
• Vincent Lau – Chief Financial Officer
• Neil Burns – Senior Vice President, Technical Services

Conference Call Transcript Overview

Opening Remarks

Randy Smallwood: Good morning, and thank you for joining us as we discuss Wheaton's performance for the fourth quarter and the full year of 2025. Our portfolio of robust, long-life assets delivered exceptional results, exceeding production targets and achieving record highs in revenue, earnings, and operating cash flow. Annual production reached 690,000 gold equivalent ounces, surpassing our guidance. Key assets such as Salobo, Antamina, and Peñasquito contributed significantly, while Blackwater and Goose continued their ramp-up, underscoring the strength of our diversified streaming model.

Last month, we released our 2026 and long-term outlook, projecting Wheaton's production to grow by 50% to 1.2 million gold equivalent ounces by 2030—a milestone for both the company and the streaming and royalty sector. Reflecting our confidence in future cash flows, we are raising our quarterly dividend by 18% to $0.195 per share, reaffirming our commitment to shareholder value. As I transition from CEO to Chair of the Board after 15 years, I am confident in Haytham Hodaly's leadership as he steps into the CEO role.

Haytham has been instrumental in shaping Wheaton's strategy and growth over the past decade, playing a key role in major transactions that have built our portfolio. Wheaton moves forward from a position of strength, with a premier asset base, a robust pipeline of development projects, and a flexible balance sheet. With that, I hand the call to Haytham to discuss capital allocation and portfolio developments.

Capital Allocation and Portfolio Updates

Haytham Hodaly: Thank you, Randy. In 2025, Wheaton continued to execute its disciplined capital allocation strategy, acquiring high-quality assets, partnering with strong operators, and maintaining attractive margins with long-term growth prospects. The addition of Hemlo and Spring Valley gold streams further diversified our portfolio, both operated by experienced partners in stable jurisdictions. After year-end, we announced the largest precious metal streaming deal ever, expanding our exposure to Antamina alongside BHP.

Quality silver production is increasingly scarce, while demand rises for industrial and safe-haven purposes. Our expanded Antamina stream strengthens Wheaton's position as a leading global silver producer, featuring favorable terms such as a production drop-down after 100 million ounces, no buyback clause, and full exposure to commodity prices. Antamina is expected to contribute about 18% of total production by 2030, becoming our second largest asset. Six additional assets are set to come online in the next five years, all permitted, funded, and progressing in construction.

The Antamina land package spans over 1,000 square kilometers, hosting multiple large-scale targets. Ongoing exploration has consistently replaced reserves, extending mine life. This transaction delivers immediate and substantial production from a world-class, low-cost asset, and we believe Antamina will operate for decades. As I prepare to lead Wheaton, I am excited to support the next generation of mine builders and remain focused on sustainable value creation for stakeholders.

Operations Review

Wesley Carson: Fourth quarter production reached 205,000 gold equivalent ounces, up 8% year-over-year, driven by strong output from Salobo and Antamina and new production from Aljustrel and Blackwater. Salobo produced a record 89,000 ounces of gold, a 5% increase, supported by higher throughput and recoveries. Vale continues to implement growth initiatives at Salobo to boost efficiency and long-term production.

Antamina delivered 1.6 million ounces of silver in Q4, a 49% increase, due to higher grades and improved throughput. Related production in 2026 is expected to rise significantly with the new BHP stream. Constancia produced 700,000 ounces of silver and 15,000 ounces of gold, down 25% and 18% respectively, mainly due to lower grades and throughput. Hudbay completed Pampacancha pit depletion in late December, following an optimized mine plan.

Wheaton exceeded its annual production guidance in 2025, surpassing the midpoint by about 9%. For 2026, production is expected to grow, driven by contributions from Antamina and Hemlo, and new projects like Mineral Park, Fenix, Marmato, and Platreef, alongside stable output from Salobo and Peñasquito. Salobo's production should remain steady, with lower grades offset by increased throughput. Antamina's output will rise with the new stream. Silver production is expected to match 2025, with higher throughput but lower grades due to ore mix. Peñasquito's production will increase, while Constancia's will decline due to pit depletion.

Estimated 2026 attributable production: 400,000–430,000 ounces of gold, 27–29 million ounces of silver, and 19,000–21,000 gold equivalent ounces of other metals, totaling 860,000–940,000 GEOs. Production will be weighted toward the second half of the year. Over the next five years, production is forecast to grow by about 50% to over 1.2 million GEOs by 2030, supported by operating and development assets. From 2031 to 2035, annual production should average around 1.2 million GEOs, with additional contributions from predevelopment assets.

Financial Summary

Vincent Lau: Q4 production set a record at 205,000 GEOs, up 8% year-over-year. Sales volumes exceeded 190,000 GEOs, a 35% increase, reflecting higher production and PBND drawdown. Strong commodity prices and production led to record quarterly revenue of $865 million and gross margin of $664 million, up 127% and 168% respectively. Gold accounted for 59% of revenue, silver 39%, and the remainder from palladium and cobalt.

Margins benefited from fixed per-ounce payments across most streams, representing 80% of revenue. Margin growth outpaced gold price appreciation, highlighting Wheaton's business model. At year-end, PBND stood at 155,000 GEOs, about 2.5 months of payable production. PBND is expected to rebuild in Q1 2026, reflecting normal timing between mine production and deliveries.

Strong operations and commodity prices drove record revenue, earnings, and cash flow. Net earnings rose 533% to $558 million, adjusted net earnings increased 179% to $555 million, and operating cash flow reached $746 million, up 134% from Q4 2024. Full-year 2025 revenue was $2.3 billion, up 80% from 2024, with 99% from precious metals. Gross margin totaled $1.7 billion, up 108%, reflecting strong performance and higher prices.

Upfront cash payments during the quarter totaled $646 million, including $300 million for the Hemlo gold stream. Dividends paid amounted to $75 million. The Board declared the first quarterly dividend of 2026 at $0.195 per share, an 18% increase. Since inception, Wheaton has returned $2.6 billion in dividends, over 70% of total equity raised, and remains committed to a progressive dividend policy, increasing annually.

Cash and cash equivalents were $1.2 billion at year-end. The Antamina silver stream with BHP involves a $4.3 billion upfront payment, to be funded by existing liquidity and new financing. Funding sources include $1.2 billion cash, $400 million free cash flow, $300 million from monetized non-core investments, $1.5 billion term loan, and $900 million from a revolving credit facility. These provide flexible, non-dilutive financing.

Net debt at closing is expected to be $2.4 billion, a modest leverage level. With strong production guidance, Wheaton forecasts over $10 billion in operating cash flow through 2028 at current prices, aiming to return to a net cash position within a year while maintaining capacity for commitments and future acquisitions. Utilizing debt for large transactions allows shareholders to benefit from precious metals price upside while preserving balance sheet flexibility.

Strategic Highlights and Q&A

Randy Smallwood: 2025 was a standout year for Wheaton, demonstrating the value of our strategy. Key achievements include exceeding production guidance, record financial results, portfolio diversification through disciplined capital allocation, and the largest precious metal streaming deal ever, doubling production from Antamina. Our development pipeline is advancing, with assets like Blackwater and Goose ramping up and several projects poised to drive sector-leading growth to 1.2 million ounces annually. With over $3 billion in annual cash flows at current prices, we support an 18% dividend increase and continue to pursue growth opportunities. In summary, Wheaton delivered record results across the board.

Investor Questions

• Funding Commitments: Wheaton expects $1.5 billion in capital commitments over the next two years, included in projections to return to a net cash position within a year, supported by robust cash flow.
• Corporate Development: The company regularly explores opportunities with existing partners, often increasing exposure to familiar assets.
• Balance Sheet and Leverage: Wheaton is comfortable with current cash and debt levels, able to fund deals in the $1.5–$3 billion range. Larger deals may require additional funding sources. The balance sheet is considered efficient, with no excess cash.
• Dividend Sustainability: The current dividend represents just over 10% of operating cash flow. Even with significant declines in gold and silver prices, the payout remains sustainable. The progressive dividend policy aims for steady growth.
• Deal Size and Leverage: Wheaton prefers leverage in the 1.5–2x range, avoiding credit risk. Most deals are funded over time, not all at once, and the company generates substantial cash flow to support growth.
• New Mine Deliveries: Wheaton structures agreements to compensate for any delivery delays. Most new projects are on schedule, funded, permitted, and in construction. Doré production moves quickly to refineries, minimizing delivery delays.
• PBND Guidance: PBND typically ranges from 2.5 to 3 months. Doré production tightens this range, while concentrate production pushes it higher. New projects may extend the timeline slightly.
• Transaction Market: Opportunities with BHP and other partners are ongoing, especially for large-scale projects. Most deals are in the $200–$300 million range, with some up to $1 billion. Recent focus has shifted back to gold, as silver opportunities are rare.
• Large Project Funding: Major copper projects require significant permitting and capital, with funding spread over construction. Wheaton expects to deploy excess cash into such projects over the next few years.
• Koné Payments: The final $156 million payment for Koné is expected in 2026, likely in Q1 or Q2.
• Santa Domingo Refund: Wheaton allowed its partner to repay $30 million and defer further interest payments since the project has not yet come online.
• Antamina Production: Antamina's output is expected to be slightly lower year-over-year.
• Accounts Receivable: Receivables should normalize over time, as they are affected by mark-to-market adjustments on concentrate sales.

Closing Remarks

Randy Smallwood: As I conclude my tenure as CEO, I am proud to finish on a high note, marking Wheaton's best year and its largest transaction. The company enters its next phase of growth from a position of strength, and I am confident in Haytham and the management team. I thank our employees, partners, shareholders, and communities for their support. Serving as CEO has been the greatest privilege of my career, and I look forward to Wheaton's continued success.

Operator: This concludes today's conference call. Thank you for joining us.

Should You Invest in Wheaton Precious Metals?

Before making an investment in Wheaton Precious Metals, consider this:

The Motley Fool Stock Advisor team recently identified their top 10 stocks they believe offer the best opportunities right now—and Wheaton Precious Metals was not among them. The selected stocks have the potential for substantial returns in the coming years.

For example, when Netflix was recommended on December 17, 2004, a $1,000 investment would have grown to $508,607. Similarly, a $1,000 investment in Nvidia on April 15, 2005, would now be worth $1,122,746.

Stock Advisor's average return is 933%, far outpacing the S&P 500's 188%. Don't miss the latest top 10 list—available with Stock Advisor membership—and join a community built for individual investors.

*Stock Advisor returns as of March 13, 2026.