Wheaton Precious Metals (TSX:WPM) has declared a fourth quarterly dividend following record cash flow in the third quarter of 2024.
The Vancouver-based metals streaming company has committed to paying $0.155 ($0.24) per share, which amounts to a US$70.3 million payout to shareholders based on current shares on issue.
Wheaton, which has a market capitalisation of C$40.5 billion ($43.8 billion), has streaming and royalty agreements over 18 operating mines and 28 development projects.
Streaming and royalty companies provide upfront financing to exploration and mining companies in exchange for either a fixed percentage royalty over the revenue generated by the operation (royalty) or physical metal produced (streaming).
CEO Randy Smallwood says the company achieved record cash flow from operations in the third quarter of 2024, with cash operating margins increasing by over 30% compared to the third quarter of 2023.
“Our portfolio of operating assets delivered solid production levels, continuing to support our annual production guidance range for 2024 of 550,000 to 620,000 gold equivalent ounces,” he says.
The headline numbers include US$308.3 million in revenue, US$254.3 million in operating cash flow and US$154.6 million in net earnings.
Third quarter 2024 revenue rose 38.1% compared to the third quarter of 2023, operating cash flow jumped 48.6% year-on-year, and net earnings were 32.9% higher over the same quarter last year.
Wheaton says the increase in revenue was largely due to a 26% jump in the average realised gold equivalent price and a 10% increase in the number of gold equivalent ounces sold.
According to Wheaton, 93% of attributable production from its assets are in the lowest half of their respective cost curves.
Cash costs were also lower for the third quarter at US$437 per gold equivalent ounce versus US$457 in the same quarter of 2023.
Estimated attributable production in 2024 is forecast to comprise 325,000 to 370,000 ounces of gold, 18.5 to 20.5 million ounces of silver, and 12,000 to 15,000 gold equivalent ounces of other metals.
Meanwhile, Wheaton forecasts production will grow by 40% to over 800,000 gold equivalent ounces by 2028 and to over 850,000 gold equivalent ounces from 2029 to 2033.
“Shortly following the quarter, Wheaton announced two accretive, precious metals streaming agreements, including a new stream on Montage’s Koné Project and an amendment to the existing stream on Rio2’s Fenix Project,“ Smallwood says.
“Once ramped-up, the Koné Project is forecast to contribute meaningful near-term production.”
As of 30 September 2024, Wheaton had US$694 million in cash, no debt, and an undrawn US$2 billion revolving credit facility after making total upfront cash payments of US$30 million relative to mineral stream and royalty interests in the quarter.
Write to Angela East at Mining.com.au
Images: Rio2
