Wheaton Precious Metals (LSE:WPM) reported second-quarter revenue of $929 million, up $426 million from a year earlier, alongside net earnings of $543 million and operating cash flow of $650 million.
The streaming company, which holds agreements across 57 mining assets globally, said first-half revenue reached a record $1.8 billion, with net earnings of $1.1 billion and operating cash flow of $1.4 billion.
"In an environment marked by commodity price volatility and cost pressures, our robust margins and cash flow generation underscore the strength of the streaming model," said Haytham Hodaly, president and chief executive.
Attributable gold equivalent production rose 6% to 202,200 ounces, driven largely by the newly acquired precious metals purchase agreement with BHP Group covering its 33.75% share of Antamina silver output, which lifted Wheaton's interest in that mine's silver to 67.5%.
Wheaton paid BHP $4.3 billion upfront during the quarter to fund the deal, financed through a new $1.5 billion term loan, a drawdown on its revolving credit facility and cash on hand.
Average cash costs rose to $568 per ounce from $406 a year earlier, but cash operating margin still climbed 65% to $3,875 per ounce as realized prices outpaced cost inflation.
The company also upsized its revolving credit facility by $500 million to $2.5 billion and extended its maturity to June 2031, taking available liquidity to $2.6 billion against net debt of $1.9 billion.
Wheaton declared a quarterly dividend of $0.195 per share and struck new royalty and streaming agreements during the quarter with KGL Resources, Spanish Mountain Gold and Cipango.
News Intelligence what this means for the company
Wheaton posted record first-half revenue of $1.8 billion and net earnings of $1.1 billion, driven by higher metal prices and the newly closed $4.3 billion Antamina silver purchase agreement with BHP, which expanded the company's silver exposure at that mine to 67.5%. Despite cash costs rising 65% year-on-year to $568 per ounce, cash operating margin climbed 65% to $3,875 per ounce as realized prices outpaced inflation, and the company strengthened its balance sheet by upsizing its revolving credit facility to $2.5 billion and extending maturity to June 2031, leaving available liquidity of $2.6 billion against net debt of $1.9 billion.
The Antamina deal materially expands Wheaton's silver production and locks in long-term exposure to a major mine, but the $4.3 billion outlay—funded through new debt and cash drawdowns—increases leverage and ties up capital that could otherwise fund shareholder returns or new streaming acquisitions. The 65% margin expansion on record volumes demonstrates the streaming model's resilience to cost inflation when metal prices rise, but sustainability depends on continued price strength and successful integration of the enlarged Antamina position.
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